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A U.S. Grains Council market perspectives note by Jay O'Neil describes dry bulk markets swinging from 13-year highs in late October to 5-month lows within ten days. It attributes the volatility to Chinese demand for bulk commodities, which China is curbing by cutting purchases to control high prices.
Freight rates are tied closely to Chinese bulk demand, so a pullback in Chinese buying lowers ocean freight costs for grain exporters and importers. Uncertainty about whether China will return to the market keeps the outlook volatile.
grains.orgNov 18, 2021Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
