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Ocean freight rates for shipping bulk grain fell in the first week of January 2020, according to the USDA Grain Transportation Report. The U.S. Gulf to Japan rate was $45.75 per mt, down 2% week on week and 3% year on year, while the Pacific Northwest to Japan rate was $25 per mt, unchanged year on year.
Only 29 grain vessels loaded in the week ending January 2.
Lower ocean freight cuts the delivered cost of U.S. grain and oilseed exports, which can soften export basis and FOB prices. The seasonal holiday lull is the main driver, so the decline is unlikely to persist.
grainjournal.comJan 9, 2020Not 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.
