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USDA's Grain Transportation Report says ocean freight rates for bulk grain rose in 2018 to their highest level since 2014. Gulf-to-Japan rates averaged $45.39 per mt (up 15%), PNW-to-Japan $25.07 (up 19%), and Gulf-to-Europe $19.85 (up 28%).
Rates remain below 2008 peaks due to excess vessel supply.
Higher freight widens the effective cost gap between US origin and competing origins, which can cut US export competitiveness and weigh on FOB basis, while raising landed feed-ingredient costs for importers.
grainjournal.comFeb 14, 2019Not enough comparable past events yet for a historical read.
After 359 past bearish logistics events, Corn moved a median -0.3% over 5 sessions (44% higher; middle half -1.5% to +1.5%), and -0.5% over 20.
After 297 past bearish logistics events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.5% to +1.8%), and +0.7% over 20.
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.
