In the 23rd week held its annual grain round in Gelendzhik. In anticipation of the new season, participants discussed current trends of the grain market. In connection with this event, but also because of the Muslim holidays on the market there was no activity. At 24-25 weeks, is expected to excess supply fleet in the Azov region, but as the freight market for Shipowners is already on the verge of profitability, rate, if gives way, at the minimum, despite the expected increase in the supply of spot tonnage.
Low activity in the region is also due to the factor that compared to the previous year, the producers have almost no carryover stocks, and those with whom they were, I prefer to hold the grain against the background of rumors about the high demand in the new season due to crop failure in the United States. Proof is the fact that sales on FOB basis the Caucasus was also stopped because the offered price does not suit sellers.
According to reports from Exporters, barley new crop will begin to clean up in the coming weeks, and in the ports it will appear in early July. The increase in the supply of goods may be a starting point to lift freight rates in the Azov sea. Most likely, suggestions for spot shipment will be on the market in the end of the month, expect the positive dynamics earlier is not necessary.
In the new crop season can significantly increase the amount of hard wheat of high class Russian origin, which in theory should mean more contracts for the supply of the EU where the product is most in demand. This may affect the rapid growth in freight rates on such areas as the Mediterranean sea and the Adriatic.
Bet on Iran during the reporting week have stopped their decline and even slightly rebounded. The main reason for this was the delay of vessels during unloading because of the holidays and the fact that many ship-Owners preferred to bring his fleet from the Caspian region to the backdrop of a sharp decline in interest rates in past weeks. In the end, there has been a trend in the deficit of the fleet that did not allow rates to sink.