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Dry bulk FFA market: Old wine in old glasses

Dry bulk FFA market: Old wine in old glasses
It was never going to be a vintage week, what with public holidays and some very real nervousness about the strength and length of the rebound in freight and iron ore.

Trading levels at the front of the curve imply some big hits to the index in the next couple of trading days, but there are still one or two bulls ready to speculate that the index could find support sooner than expected.

Capes saw a negative tone with rates slashed in both oceans midweek, bringing paper under pressure. The front end and Q3 were hardest hit though some buyers were prepared to come back to the market leaving the market largely unchanged.

With most of the world on holiday on Thursday it was little surprise that physical was very quiet with little change in rates. That made paper a non-starter with little change in rates and trading volumes thin, suggesting a quiet end to the week.

Despite little change to the gloomy physical picture panamax paper seemed to attract some better buying, albeit gradually, perhaps in expectation of some improved activity after the holidays.

More of the same Thursday with levels continuing to improve on light volume as the rate of decline in the index continued to flatten. Despite many missing participants, the emphasis came from the buy side early lifting May-June and Q3, with the curve well supported to the close.   

Supramaxes were softer too with prompt lacking real competitive bids but Q3 and Q4 saw some activity and the index nudging downwards. Quieter and inactive as the week drew on with some action nearby but another negative index made little change to the day which certainly had a Friday feeling about it, even though it was only Thursday.

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