American Consortium Wins $2.5B Black Sea Port Project

$2.5 billion contract to build and develop a deep-sea port in Anaklia on Georgia's Black Sea coast. The Anaklia Development Consortium is a joint venture of Georgia's TBC Holding and Conti International, a U.S.-based developer of infrastructure and capital projects. The consortium, selected in a tender, aims to start the construction of the port by the end of 2016 and finish it in three years. The port will have the capacity to berth container ships of the 10,000 TEU type and to process up to 100 million tonnes of cargo per year upon completion.

Hansa Heavy Lift targets more offshore and Arctic business

Given the huge industrial development projects now taking place in northern Russia, the Hamburg-based Hansa Heavy Lift, heavylift specialist is now eyeing transits along the Northern Sea Route (NSR) more often. The HHL New York and HHL Amazon, which both hold Ice Class E3 equivalent to Russian Arc.4 (Finnish-Swedish Ice Class 1A), successfully completed voyages along the western boundary of the NSR in late 2015, delivering the heat exchanger for an LNG plant as well as other power generation equipment.

Russia become largest wheat exporter

Russia is set to leave behind Canada and the U.S. – the largest and the second largest wheat exporter respectively – during this year’s wheat harvest. The shift is caused by a strong dollar, cheap oil and expanding harvests. Russia is poised to export 23.5 million tons of wheat this year, an increase of 3 per cent, while Canada is set to export 20.5 million tons and the U.S. is set to export 21.8 million tons, the lowest level in 44 years.

Panama Canal Locks will complete by June

After more than a year-long delay, a new set of larger locks for the Panama Canal will be complete by the end of June, after builders repaired cracks that had formed in the concrete walls. The consortium building a third, bigger set of locks on one of the world's busiest maritime routes, headed by Italy's Salini Impregilo and Spain's Sacyr, is now in testing, the final step before the project's inauguration. Panama should start to benefit from the expansion in 2017, when the government foresees getting an extra $1.4 billion in revenue, a jump of 30 percent compared with this fiscal year.

BDI drops to 298 points

The dry bulk market woes continue as the Baltic Dry Index fell another five points from Wednesday to 298 points, its lowest level yet recorded.The latest drop is mainly due to declines in the supramax and handysize segments.

Fearnleys Dry Bulk Market Report

Capesize As everyone is getting ready for the Chinese New Year, already depressed rates are under further pressure. West Australia to China has been concluded at USD 2,85 pmt and the c3 market remains inactive. Period rates for one year remains in the low USD 5,000s. Owners are exploring the opportunities for laying up tonnage but so far few ships have actually been laid up. Panamax Freight rates remain at historically low levels. In the Atl basin we have seen a decent flow of cargoes this week but they covered at rock bottom levels. Only flashes are grains from USG and ECSA paying up from last week. Fertz from Baltic to China pending arnd mid teens which give the owner less than 5k in return on tc. With China new year coming up, we anticipate activity to drop further in Feast. Nopac business paying arnd 2,5- 3 k aps and Aussie/China paying arnd 3k +40 aps. Some periods with wide spreads concluded and we estimate good Panamax obtain 4250 for 6-7 mos upto 1 year now. There are a lot of insecurity around and many owners have to renegotiate hire rates in order to survive the coming months. Handy Supramaxes do not see any light at the end of the tunnel. It seems that the market moves in line with the bunker prices and as such has actually see the bottom. With period fixture in the mid USD 3000’s and small movements in the trip rates still in the USD 1000-1500 level, there is little reason to rejoice. Having said that, the market can only go one way, and as such we may see upward movements on the back of seasonal demand, but it is unlikely to be sustainable.

Western Bulk sell chartering arm

Oslo-listed Western Bulk is to sell Western Bulk Chartering to Kistefos. The sale has an enterprise value of $47m with Western Bulk to receive $16m in cash and Kistefos will take over its outstanding debt of NOK271m under an unsecured bond issue.

Samsung Heavy Industries massive $1bn loss in 2015

South Korea’s Samsung Heavy Industries (SHI) has been hit by a massive KRW1.2trn ($1bn) loss in 2015, despite achieving an operating profit in the final quarter. The Korean shipbuilder’s 2015 loss was a reversal from the profit of KRW147bn in the previous financial year. Revenue last year was recorded at KRW9.71trn, down 25% year-on-year.

Oakland Port Terminal Files for Bankruptcy

The U.S. Port of Oakland's Outer Harbor Terminal filed for Chapter 11 protection, two weeks after one of its biggest tenants said it was terminating a 50-year lease with the northern California port. In a Chapter 11 petition filed in U.S. Bankruptcy Court in Delaware, Outer Harbor Terminal, which operates part of the Oakland port, listed both assets and liabilities of between $100 million and $500 million. The Port of Oakland, located on the shore of San Francisco Bay, was one of the first ports in the world to specialize in intermodal container operations. It is the third-largest container shipping port in California and handles more than two million TEUs cargo annually.

Modern Express will run aground in southwest France

Ro-Ro Modern Express is drifting on its side off the French Atlantic coast and will run aground in southwest France if a renewed attempt to tow it to port fails on Monday. The 164-metre-long vessel, which was transporting 3,600 tons of wood along with construction machinery from Gabon to France, has been drifting towards the coast since its crew was evacuated by helicopter last week.

Brazil sugar expansion may come later than market needs

Brazil's sugar industry will expand to help fill a global supply deficit, but that process could take longer than hoped. Some 70 Brazilian sugar mills have filed for protection from creditors in the past three years as a long period of depressed sugar prices squeezed profit margins.

Egypt rejected a French wheat shipment

Egypt rejected a French wheat shipment it said did not meet strict new import rules, rattling traders who said the move could drive up the cost of supplying the world's largest buyer and endanger its ability to provide its poorest citizens bread. The 63,000-tonne shipment arrived to Egypt in December and was initially rejected by agricultural quarantine for containing ergot, a common grains fungus.

China will get tougher regulation of genetically modified crops

China aims to crack down further on the cultivation of illegal genetically modified crops, following instances of the planting of unapproved strains of corn and soybeans. The agriculture ministry began a nationwide investigation last year amid media reports that farmers in the northeastern province of Heilongjiang were planting unapproved GMO varieties of soybeans. As much as 93 percent of samples from cornfields in Liaoning, another northeastern province, tested positive for GMO contamination, a survey by environmental group Greenpeace shows.

El Nino rains could complicate harvests for Brazilian farmers

Brazilian grain farmers are expected to face wetter conditions from the lingering effects of El Nino as the bumper harvests of summer soybeans and corn unfold in the first half of 2016, weather forecasters said on Thursday. Brazil's sugar cane and coffee belt, which only start harvest in the second quarter will benefit if a final burst of moisture helps crops fill out in late stages of crop development. But if heavier than usual rains persist after April they will complicate harvest for the crops.

India might have record wheat imports

Unfavorable weather and dwindling stocks may cause India to import a record volume of wheat over the next year. Following the second consecutive below-average monsoon, India has been facing dry conditions for this year’s wheat crop. Periodic heat spells since planting have also added extra stress to the plants. Indian wheat farming relies heavily on a sufficient monsoon prior to the start of planting in October. The monsoon, or rainy season, typically lasts from July through September.

Russia to consider wheat export tax cut

Russia will consider removing or cutting an export tax on wheat and imposing one on barley and corn (maize) exports. Concerns over possible tougher limits on Russia's foreign sales of wheat had helped Chicago prices of the commodity hit a one-month high on Tuesday. "The Agriculture Ministry has proposed cutting export duties.

Fearnleys Dry Bulk Market Report

Capesize Freight rates remain at record low levels, more or less unchanged from last week. Iron ore out of Australia is steady whilst the operations out of Tubarao resumed at the beginning of this week after having been suspended last week due to environmental concerns. Shipowners are faced with difficult questions; To scrap or lay-up tonnage or to continue trading. So far most owners are taking a wait and see attitude, however if present freight- levels remain, the latter may be difficult. Panamax Nowhere to hide in the Panamax market with new all-time-lows all across the block. Owners are reluctant to fix the levels offered, and activity is low. Even challenging INL breach or iceclass requirements in the Atl is fixed at the poor levels offered.TA rounds south of 2K on T/C and fronthaul, although at limited pace < 20 pmt from USG and 12 pmt from ECSA. The Eastern hemisphere is slow and affected by holidays down under and in India. Modern units get < 2K in return, bss APS and waiting days. The only increase we see is in scrapping and poss lay-up. Period market hardly evident, with a few index linked agreements reported. The forward curve is not particulary volatile at 4300 rest of year and 5300 for C ... Handy We are breaking records every day now. We are down to levels where lay up costs are more interesting than letting your ship go for another round. Short periods on Tess 58’s are fixed in the mid 3’s for Feast delivery. Indo rounds are fixing at USD 1,500 bss Spore delivery. Indo/India trips are done at ard USD 2,500 bss APS delivery. In the Atlantic we see the same tendency with rates slipping even further. TA’s paying in the mid 3k while USG/Cont can get in the 6k’s. The Chinese New Year is approaching and it seems that market players are not too optimistic for the short/medium term. We reckon the 1 year period rate would be at ard 5k flat as owners would hesitate to lock in less for 1 year.

Russian wheat export prices fall further on weak rouble

Russian wheat export prices fell further last week and early this week due to a continuing decline in the rouble, which makes Russian grain more competitive on the global dollar-denominated markets. Black Sea prices for Russian wheat with 12.5 percent protein content were at $181 a tonne on a free-on-board (FOB) basis at the end of Monday, down $0.5 from a week earlier.

Canada aims to U.S. in global wheat trade

Canada is aiming to supply the United States as the Western Hemisphere's dominant wheat exporter, as its invigorated grain-exporting sector cashes in on weakening currency and cheap freight rates. Canada overtook the United States in 2014/15 in wheat export volumes for the first time, exporting 24.1 million tonnes. It is forecast to fall short of eclipsing U.S. shippers in 2015/16, with both countries trailing top exporter Russia.

Ivory Coast cocoa farmers worries

Rain that has fallen in many of Ivory Coast's cocoa growing regions will aid the April-to-September mid-crop but damage caused by the Harmattan wind remained a concern for some. The Harmattan is a wind that usually blows from the Sahara during December to March. At its peak it can destroy cocoa pods and sap soil moisture, making beans smaller.

MSC Ship Aground in St. Lawrence Seaway

Canada’s Transportation Safety Board has deployed a crew to Deschaillons-sur-Saint-Laurent, Quebec, after the container ship MSC Monica ran aground on Friday. The incident occurred in the St. Lawrence Seaway about 190 kilometers northeast of Montreal, between Trois-Rivières and Québec City. The 245 meter (800 foot) vessel reportedly experienced rudder problems and drifted off course. The hull does not appear to be breached, and no injuries or pollution have occurred as a result of the grounding. Traffic on the river has been unaffected. The ship is reportedly unable to be refloated on its own power. The 3,400 TEU vessel was built in 1993 by Samsung Shipbuilding & Heavy Industries.

General cargo vessel sinks off Panama

Venezuela-flagged general cargo ship Alita sank off Colon, Panama, while awaiting scrapping at anchorage off Colon, Panama, after colliding with another vessel. Another cargo vessel, which was manoeuvring to drop anchor off Colon, was caught in high winds and hit Alita, causing a hole at the waterline and the 4,250 dwt ship to list and partially sink. Alita's skeleton crew were safely evacuated and no-one injured. No water pollution was reported.

Swire Bulk to expand Atlantic presence

Swire Bulk has expanded its Atlantic presence with the opening of a new office in Miami, US, on Monday. Swire Bulk, the dry bulk operating arm of The China Navigation Company (CNCo), announced that the Miami desk will work closely with the London and San Francisco offices to grow the dry bulk handy business in North and South America. Andrew Kidd, CNCo’s Swire Bulk general manager, noted that trading conditions have been challenging but the company has taken a long term view of growing its business and has invested in a newbuilding programme to renew and expand its fleet since 2013. “By the end of 2016, Swire Bulk will own 24 modern Swire B.Delta39 handy bulk carriers and four Imabari38 loggers. We are looking to recruit more chartering managers with strong cargo backgrounds across our network to grow our global footprint,” said Kidd. With the opening of the Miami office, Swire Bulk now operates from eight locations including Singapore, Tokyo, Melbourne, San Francisco, Shanghai, Beijing and London.

BDI shifts sideways at record low to change dominant 2016 direction.

Over three weeks into 2016 the Baltic Dry Index (BDI) has finally halted a run of successive declines. Climbs in the capesize market countered falls elsewhere to leave the BDI level at a historic low of 354 points on Monday. It comes amid widespread talk of layups and with Jinhui joining Norden in extending expectations for a recovery. The Baltic Capesize Index was up 25 points to 254 on Monday, with some improvements on all key routes. It follows a 9% rise in the cape market last week, all be it to a low $3,000 per day. Monday’s progressed continued the trend, easing rates to $3,200 per day.

Farmers forced to sell grain at low prices

Facing mounting bills and nervous creditors, U.S. farmers are beginning to sell off their crop stockpile - sometimes at a loss - and easing a months-long logjam prompted by the lowest grains prices in at least five years. Farmers now looking for cash to pay off debts and buy seeds for next season have been lured to sell by a four percent rise in corn futures over the past two weeks. That rise came after speculators with huge short positions were caught off guard when the U.S. Department of Agriculture (USDA) cut its corn and soybean harvest views on Jan. 12.

Paris wheat futures rose

Paris wheat futures rose on Friday, supported by a weaker euro and an accelerating rebound in commodities and equities, but hefty supplies kept the market not far from contract lows hit earlier in the week. March milling wheat, the benchmark on Euronext, was up 0.25 euros, or 0.2 percent, at 164.25 euros a tonne by 1659 GMT. Over the week it was down 1 euro and remained near Wednesday's contract low of 163.25 euros.

Ma Zehua steps down as chairman of China Cosco

Ma Zehua has stepped down from his positions as chairman of the board and non-executive director from China Cosco Holdings Company Limited, effective 20 January 2016. Cosco announced to the stock exchange that Wan Min, a non-executive director, has been appointed as chairman and a member of the executive committee. Cosco said the the resignation of Ma is “due to change of work positions” and that Ma “has confirmed that he has no disagreement with the board”.

Cargill closing doors of London shipping office

Distress in the dry cargo market has led Cargill to close the doors of its London shipping office. The trader says the move comes with the dry cargo freight market facing the worst conditions since the 1980s - a situation it expects to continue for the foreseeable future. Business previously handled from Queen Victoria Street, London, will transfer to the Geneva office.

China soymeal demand to drive soybean imports to another record year

China, the world's top buyer of soybeans, is likely to import record volumes of the oilseed again this year as crushers take advantage of cheap overseas supplies to meet nearly all the demand for protein-rich meals. Feed mills, the major consumers of soymeal, are using the soy product to replace other protein sources such as rapeseed, cottonseed and distillers dried grains (DDGS), even as hog stocks - which account for more than 40 percent of China's use of livestock feeds - have fallen to their lowest in years.

Brazil 2016 coffee crop could set record at 51.9 mln bags

Brazil's Agriculture Ministry presented its first study of the new coffee crop, forecasting that harvest could reach 49.13 million to 51.94 million 60-kg bags. The high end of the forecast by the ministry's Conab crop supply agency would surpass 2012's record 50.8 million bags. The estimate is also 14 percent to 20 percent higher than last season's 43.2-million-bag harvest, which was curtailed by two years of drought.

Malaysia suspends bauxite mining

Malaysian authorities have announced a three-month moratorium on bauxite mining with immediate effect. The ban follows increasing environmental fears surrounding pollution of rivers and the sea in the country's leading bauxite-producing state of Pahang. As part of the ban, the government will certify that mining companies are complying with new operational measures. Those mines that are not operating according to the new guidelines risk not having their Approved Permits (AP) for mining renewed.

Capesize rise can't stop BDI fall

A single point rise in the capesize index could not prevent the dry cargo market slipping further into record low territory today. Continuing a trend of successive daily lows in 2016, the Baltic Dry Index (BDI) today slumped to 358 points. Slowing growth from China is the main driver with China yesterday reporting 2015 GDP of 6.9%, down from 7.3% in 2014 – but industrial output is falling faster as the figure for 2015 was 6.1% vs 8.3% for 2014.

EU wheat steadies after lows but mood still bearish

European wheat futures edged up on Tuesday, recovering from contract lows a day earlier as they got support from higher prices in Chicago and a broad rally across commodity and equity markets on hopes for stimulus measures in China. But Euronext's gains were tepid as the fundamental outlook for grain markets remained bearish. Potential support from freezing weather in northern hemisphere wheat belts was curbed by snow cover protection for many crops, traders said.

Potash Corp shuts Canadian mine

Weak conditions in the potash market will not improve any time soon, the chief executive of Potash Corp of Saskatchewan said on Tuesday as the crop nutrient company announced it would suspend operations "indefinitely" at a Canadian mine. Potash Corp said it was putting its Picadilly mine in the Canadian province of New Brunswick on care and maintenance, resulting in the loss of 420 to 430 jobs.

Fearnleys Dry Bulk Market Report

Capesize Idling or layup are now very real alternatives to sailing even for owners of modern tonnage in this segment, and the number of units drifting or anchored is increasing exponentially.Vintage ships are practically excluded from trading, as preference is for modern units and mere economics simply don't allow for anything but optimal speed/consumption and draft/dwt ratios. With coal trading on its knees and iron ore volumes nowhere near absorbing available tonnage, average daily earnings dropped another 13% w-o-w to come in at an all-time low of USD 2700 - for those 180000 tonners that are still in service. No immediate relief is in sight, reflected by 206000 dwt/built 2012 fixing around USD 6500 for about 12 months. Panamax Another depressing week, with a market in steady decline all across the board in both hemispheres. The release of Chinese economy growth last year at 6,9 % did not inject any optimism in an already battered sentiment. For spot activity the overwhelming supply is outperforming the demand to an extent hardly seen before. Transatlantic rounds are well below 3.000 on T/C average, with all business concluded bss APS without BB. Fronthaul activity is limited, with levels arnd 6K. ECSA grains also moving slow with 5 + 90 done on modern Kamsarmax. The Far East is hovering around 3K + a small BB. Period activity is hardly evident with a year well under 5 K and a 12 months forward curve levelling out at 4.500 mid week. Handy The Supramax market has been more active in the east this week with freight still at unimproved levels. It is unlikely that the market can fall beyond present levels. Even with optimistic expectations for grain volumes from South America, the market is unlikely to improve for more than a seasonal spike. Owners are now willing to give optional years for period deals at flat rates, re-enforcing the negative vibes rattling though the market. Even if there is some contango in the futures market, it is essentially flat.

Argentina cuts soy import barriers

Argentina has lowered soybean import barriers, the government said, in a move aimed at increasing exports of soymeal livestock feed and soyoil at a time when processing plants in the country have an idle capacity of 30 percent. The decision was the latest free-market reform brought by President Mauricio Macri, who was elected in November on promises of revitalizing the ailing economy.

Greek ports to be hit by 48-hour strike

Greece is set to be hit a 48-hour strike that will impact, commercial vessels calling at major ports and domestic and local ferries. According to Inchcape Shipping Services (ISS) said a 48 hour strike had been called by the Seaman’s Union of Greece on 20 January and would affect the ports ports of Piraeus, Aspropyrgos, Eleusis, Pachi, Megara and Thessaloniki for cargo discharging.

Six-point decline in the Baltic Dry Index (BDI)

Brutally poor rates in the dry cargo market took another turn for the worse today against a backdrop of more negative economic news. A six-point decline in the Baltic Dry Index (BDI) extended a crawl into record low territory that has characterized the market this year. The new low benchmark is 363 points. Experts pointed to the International Monetary Fund’s third cut to global growth forecasts in less than a year as a further macroeconomic headache for owners battling a loss making market.

Eagle Bulk has a couple of weeks to find a solution to financial situation

Eagle Bulk is locked in talks with key lenders following a loan breach that led it to miss a scheduled repayment. The bulker owner has secured a forbearance agreement running until 2 February to thrash out a solution with its banks. In a statement, Eagle said it was in breach of a facility with ABN AMRO and other lenders following “apparent violations in the provision of shipping services for third party charterers with respect to the transportation of cargo”. This meant it was not possible for the company to access cash in a revolver and subsequently missed an instalment payment last week.

Russian wheat export prices fell further on weak rouble

Russian wheat export prices fell further last week as the rouble dropped close to a record low against the dollar on weak oil prices. Black Sea prices for Russian wheat with 12.5 percent protein content were at $181-182 a tonne on a free-on-board (FOB) basis at the end of last week, down $2-$3 from a week earlier.

Lauritzen Bulkers sold another handysize bulker

Lauritzen Bulkers continues to dispose of modern handysize bulkers, selling a fifth unit in a little more than a month. The Hakodate-built Laura Bulker (built 2008) is understood to have gone to a Turkish buyer for some $7.5m. Such a figure is largely in line with the four other units that the company has sold of late.

The Laura Bulker sale follows the departure of the 28,700-dwt Amine Bulker and  Sofie Bulker (both built 2007),  the 31,000-dwt  Maren Bulker (built 2008) and the 28,400-dwt Tenna Bulker (built 2005). 

Peter Borup, president of Lauritzen Bulkers, says Lauritzen is not  commenting "on alleged sale and purchase activities in regards to our fleet". The company last year sold its capesize bulkers. Thehe 180,000-dwt  Corona Bulker (built 2011) went to Marmaras Navigation of Greece and the sistership  Churchill Bulker (built 2011) to Diana Shipping.

Lauritzen Bulkers has also sold other ships from its core handysize segment. Asked whether the company is on its way to become a pure operator of bulkers, Borup said: "We have for some time wanted to increase our operator activities in order to make sure we leverage the trading  knowledge generated by our strengths, particularly in the handysize segment. I agree that asset values are very low. The question, however, is not merely one of price development, but the cost of holding on to assets that can easily amount to $ 2m to $3m over the next two or three years when drydocking,  ballast treatment systems and generally low freight market predictions are taken into consideration."

Vinalines revenues rise 12%

Vietnam's national shipping company Vinalines has posted a 12% rise in revenue last year.
Income increased to VND 18.4 trillion ($822.53m), the company's acting general manager Nguyen Canh Tinh told the Vietnam Economic Times.

Last week, Vietnam's government told the owner it must sell out of nine subsidiaries. Eight of these are port operations: Khuyen Luong, Danang, Vinalines Dinh Vu, Cam Ranh, Nam Can, Nghe Tinh, Can Tho and Cai Lan.

Two cargoes of Argentine wheat arrive in U.S.

Two cargoes of Argentine wheat were scheduled to arrive at port in Wilmington, North Carolina, indicating a rare situation where U.S. buyers actually find it cheaper to purchase imported grain than abundant domestic supplies. Argentina’s wheat prices tumbled last month after the country devalued its peso and scrapped export taxes. The South American country also sold large volumes to top global wheat importer Egypt for the first time in years. Chatter circulated that hog producers in the southeastern United States were buying feed-quality Argentine wheat that was priced at a discount both to U.S. corn and U.S. wheat.

Suez revenue falls

Revenue has fallen at the Suez Canal during 2015, but takings have risen since the new expanded waterway opened in August. The Egyptian operating authority said income last year was $5.17bn, from $5.46bn in 2014. December’s figure was $429.2m, against $445.5m the year before. The $8.5bn project widened the 193-kilometre waterway in its middle part, allowing two-way, parallel traffic for two convoys starting from its opposite ends at around 3:30am to 4:00am daily. Transit times on the southbound route are shortened to about 11 hours from 18 and waiting times before entering the channel should fall to three from up to 11 currently.

China's demand for raw sugar

Surging white sugar demand driven by China, and a buoyant whites-over-raws premium, are having a knock-on effect on the raws market, spurring refiners to step up production. The premium, a measure of the profitability of refining raw into white sugar, has risen to around $100 per tonne, buoyed by the strength of demand for whites.

Weather concerns slow Brazil soybean sales in December

Sales of Brazil's current 2015-16 soybean crop were slowed by producers' concerns over irregular rains in December in the early harvesting center-west regions of the grain belt. The analyst estimates that 48 percent of the prospective crop that is in the early stages of harvest has been sold. That is still up from the 44 percent average sold by the end of the year, but sales advanced a meager 4 percentage points from the end of November.

Japan shipbuilders association head calls for government support

Shipbuilders Association of Japan chairman Shigeru Murayama has urged the country's government to support the shipbuilding industry as he expects 2016 to be a tougher year for shipping.

BDI below 400 points

Dry cargo rates sank further into uncharted territory today amid concerns of more pain ahead of asset prices and continued talk of lay-ups. The Baltic Dry Index (BDI) set a seventh successive record low and simultaneously slipped below 400 points for the first time. The latest benchmark of 394 points was again mostly driven by falling capesize rates.

Fearnleys Dry Bulk Market Report

Capesize Slow week with limited activity. The west Aussie miners have been very quiet this week, so the rates on this route remains flat. Some activity on Brazil to China, but rates have dropped and been fixed in the mid/high USD 5 pmt level. Limited cargoes from Saldanha to China and rates continued to drop, with rates fixed very close to USD 4 pmt mark. More owners realize that this year will be difficult and they are therefore trying to cover their tonnage on period, however the rates for short/medium period are not even covering operating costs at the moment, but are still at a premium to the present spot market. Short period in the Pacific is around USD 4000 daily while the spot market is around USD 2500. Panamax A steady decline, >15% w-o-w and “all time low” for Panamax. Fresh requirements are scarce in Atlantic. About 3000 on T/C, and < 5 pmt on voyage for short T/A rounds. Fronthaul activity limited, fixtures done at low 6000 on T/C. USG activity poor, paying 22-23 pmt or 9+90 APS. ECSA activity slow, at around 13 pmt or 3500 from India-Spore range alt 6000+150 APS. The Eastern Hemisphere is suffering even more, with levels APS 3+30 Indo/China around 4+100 for NOPAC mid-week and sliding. Owners asking mid 5’s for sh.period and <5k for about 1 year. Not much done. With a forward curve of 4500 for rest of year we might as well remember the famous words of good old Churchill; “If you’re going through hell, keep ... Handy W-O-W the rates are up from last week, but mid-week we see the market coming off again. Less fresh requirements in both hemispheres. In the Pacific, we see Aussie rounds being fixed in region of USD 3-4k bss delivery SE Asia. NoPac rounds fixing in region of USD 5k+70-80k GBB and trips Indo/India around 3-4k as well. In the Atlantic, we have been seeing some grains moving out of ECSA to Far East and Med. Trips into Med are fixing low 6k APS, while the Black Sea/Far East route fetch around USD mid 7k. The period market is very slow these days, but a good specked Smax should be able to fix in the very low 5’s for short period bss delivery Far East.

Thai cabinet will buy rubber at up to $1.65 per kg from farmers

Thailand's government will buy rubber directly from farmers at prices of up to 60 baht a kilogram, nearly double the market price, in a bid to placate increasingly disgruntled farmers as prices dip to a seven-year low.The cabinet did not guarantee a price for 60 baht ($1.65) per kilogram (2.2 lb), as demanded by some rubber farmers groups, but said it would purchase up to 200,000 tonnes of rubber at up to 60 baht a kilo.

Indonesia targets 9 pct growth in 2016 coffee bean output

Indonesia's coffee bean production is targeted to increase 9 percent to 600,000 tonnes in 2016, up from 550,000 tonnes last year, amid a growing market for the drink domestically and overseas. According to Irfan Anwar, chairman of Association of Indonesian Coffee Exporters and Industries, there is a bright future for coffee in Indonesia and Asia.

China 2015 soybean imports at record high on feed demand

China imported 9.12 million tonnes of soybeans in December, the second highest monthly level on record and taking total 2015 imports to a record high of 81.69 million tonnes. December soybean imports were up 6.9 percent on a year ago, while 2015 shipments rose 14.4 percent, reflecting strong demand for soymeal, a key ingredient in animal feed production.

India develops new rapeseed variety to help cut veg oil imports

India has developed a new variety of rapeseed as part of Prime Minister Narendra Modi's push to cut imports of vegetable oils, the country's third-biggest import item after crude oil and gold. The new rapeseed variety will have higher oil content and lower erucic acid, a harmful compound. Indian farmers plant rapeseed in October-November, with harvests from March.

Thai govt promises help for rubber farmers hit by falling prices

Thailand's prime minister promised help for farmers in the world's top rubber producer and exporter, amid threats by the farmers to protest if their demands for a guaranteed selling price demands are not met. Prices have plummeted to a seven-year low amid a global commodities slump, testing the traditional support from rubber farmers in the south for the conservative royalist establishment championed by the generals who seized power in 2014.

Russian wheat prices down

Russian wheat prices fell at the end of last week compared with the end of December due to lower global prices and renewed weakening of the rouble. The Russian rouble continued to fall against the dollar since the start of the year along with crude oil, which dropped to a new 12-year low on concerns about China's economy.

Ivorian cocoa at risk from strong Harmattan winds

Three straight days of strong, dry Harmattan winds last week in most of Ivory Coast's cocoa growing regions have damaged flowers and small pods, raising concerns about both the main and the mid-crop. The Harmattan is a dusty wind that typically sweeps in from the Sahara from December to March. When strong, it can ruin small cocoa pods and sap moisture from the soil, reducing beans' size.

Russian general cargo ship runs aground and sinks off Japan

Panama-flagged Russian general cargo vessel City ran aground on a breakwater approaching Sakata port in Japan’s Yamagata Prefecture over the weekend. According to local reports, following the grounding, strong currents and wind caused the 7,001 dwt vessel to drift and hit rocks, resulting in significant hull damage, and the ship began to list to starboard before sinking. The 18-man crew, comprised of 14 Russians and four Bangladeshis, were safely evacuated by a Japanese Coastguard helicopter. No pollution was reported.

Glencore knocked back

Australia has rejected a bid by Glencore to regulate prices at the port of Newcastle. The trading giant wanted fees overseen by the Australian Competition and Consumer Commission, and access to the channels for 15 years. Glencore claimed the port has increased prices for bulkers since 2014 by about 60%.

Switzerland's ADM offers $215.87/T in Bangladesh wheat import tender

Switzerland's ADM International offered to sell 50,000 tonnes of wheat to Bangladesh for $215.87 a tonne, the lowest offer in a tender that opened on Sunday. Eight trading companies competed for the tender, which was the second issued by the Directorate General of Food since the current financial year started in July.

Brazil soy farmers ask government to file WTO complaint against U.S.

Brazilian soybean farmers have asked their country to file a complaint against the United States at the World Trade Organization alleging that U.S. farm subsidies give an unfair advantage to the world's top soybean producer. Brasilia-based farm group Aprosoja says those subsidies might be costing Brazilian farmers $1 billion a year in lost business, according to Endrigo Dalcin, president of the association's local branch in Mato Grosso, the nation's top soy-growing state.

China must cut corn prices to clear stockpile

China must lower corn prices to reduce its massive corn stockpile and curb imports of corn substitutes including barley, sorghum and distillers' grain, state media quoted a senior agricultural official as saying. Chen Xiwen, deputy director of the Central Rural Work Leading Group, said China needed to modify its reserve-based crop price support mechanism to curb the mounting grain stockpile.

Argentina 2015-16 wheat output

Argentina's 2015-16 wheat output is now forecast at 10.1 million tonnes compared with a previous estimate of 9.5 million tonnes, the Buenos Aires Grains Exchange said in its weekly crop report on Thursday. The exchange cited higher than expected yields as the reason for the revision.

China 2015/16 soy imports

China will import 2 million tonnes more in the 2015/16 marketing year at 80 million tonnes, an official grains think tank said in a revised forecast, up 2.1 percent from 2014/15 due to higher-than-expected crushing demand. Imports of soy in the previous marketing year that runs from October to September stood at 78.36 million tonnes.

Stevedores threaten future of Lisbon port

Stevedores in the Port of Lisbon have announced that they will resume strikes on January 7, if port operators “use workers from outside the profession”. Both stevedores and terminal operators have agreed to resume talks to reach a new collective bargaining agreement, for which initial discussions were abandoned in last year after no fewer than 36 meetings had been held.

China's shipping bankruptcies likely to surge as dry-bulk rates plunge

China's dry-bulk shipping industry will likely see a surge in bankruptcies this year as freight rates hit record lows and the country's demand for imports wanes. A number of firms have already gone bust over the past year as the industry grapples with the worst downturn on record due to stalling demand for iron ore and coal from China and a global surplus of vessels. With benchmark freight rates now at an all-time low, finances will be further stretched for shippers.

South Africa may need to import 5 mln tonnes of maize

South Africa may need to import as much as 5 million tonnes of maize this year, roughly half of its requirements, because of its worst drought in three decades. The drought in the continent's biggest maize producer has been exacerbated by an El Nino weather pattern and follows dry spells last year that reduced the crop by a third to 9.94 million tonnes, the lowest since 2007.

Brazil starts soy harvest with concerns over dry soil in Mato Grosso

Soy harvesting has started in Brazil's top two growing states Mato Grosso and Parana, with farmers concerned over irregular rains causing damage in the center-west soy belt.

Fearnleys Dry Bulk Market Report

Capesize As expected rates have been under pressure the first week of the new year. West Australia / China rates are up from sub 3 pmt levels during Christmas to approx USD 3,30 with a slightly further improvement expected. Fronthaul cargoes remain scarce. Some period activity with short period fixtures beeing concluded around the USD 4,500 a day for 175,000 dwts. Panamax Activity in the Atlantic seems to increase a bit after X-mas and new year, especially grain from USG and ECSA to far east absorbing tonnage. Transatlantic roundvoyages paying arnd 4000 USD depending delivery, duration and redelivery. Cold weather and more ice can make Baltic and North Atlantic tight, if iceclassed tonnage needed. Sofar rates steady. Rates moving up for fronthaul and 10.000 + 150 bb reported fixed from USG to feast. ECSA to feast paying mid 7 k + 220 k bb. Grain from ECSA to continent paying mid 6k for a good Kamsarmax. Nopac rounds paying 4000 USD + 100 k bb. Pacific rounds hovering around low/mid USD 3000. Period market slow but we believe modern tonnage get arnd USD 5500 for 1 year Handy After a quiet holiday period, the market has slowly awakened from its slumber. Rates are not running away but the market looks like it is finding a bottom. Averages for a Surpa are now around mid USD 4000’s and only marginally down from pre Christmas levels. 2016 has started with a couple of period fixtures reported at low USD 6000’s for Ultramaxes. Thus by default Supras will only be worth something in the USD 5’s for a 12 month deal.

Ardent Mills restarts Illinois flour mill after flooding

The largest U.S. flour miller, Ardent Mills, has resumed operations in Alton, Illinois, as floodwaters along the Mississippi River receded while a mill in Chester, Illinois, will remain down for weeks. Near record-high floodwaters following deadly winter storms forced the company to shut down the mills a week ago.

Brazil to export record 57 million tonnes soybeans in 2016

Brazil will likely export a record 57 million tonnes of soybeans in 2016, with new northern ports shipping most of the four million tonnes increase from last year. Brazil's largest port of Santos is operating at full capacity and rains in southern Brazil triggered by El Nino are expected to slow shipments from Rio Grande, São Francisco do Sul and Paranaguá ports.

Indian sugar export prospects fade as domestic prices soar

Indian domestic sugar prices have surged, boosting incentives for production of low-quality white sugar for the local market and giving Brazil a competitive edge in the export market. Sugar prices in India have risen more than 15 percent in a month on concerns over lower than expected output because of drought, making exports less attractive for mills even after export incentives.

Chinese farmers are illegally growing GMO corn

Farmers are illegally growing genetically modified corn in China's northeast in a report that may generate further distrust of the government's ability to ensure a safe food supply. Beijing has spent billions of dollars to develop GMO crops that it hopes will ensure food supplies for its 1.4 billion people but has not yet approved commercial cultivation amid deep-seated anti-GMO sentiment.

BDI Hits 468 Points

The benchmark Baltic Dry Index hit a new all-time low of 468 points, in what analysts at Deutche Bank described as a “perfect storm” for bulker operators. The index exceeded 10,000 points only five years ago. Deutche Bank had a warning regarding vessel sales in the current weak market, suggesting that offloading ships could force some operators into bankruptcy as large asset reductions would violate their loan covenants. Bankruptcy proceedings and forced sales are becoming almost commonplace among bulker companies overseas, and analysts predict many more for 2016.

Thorco confirms crew find

Thorco Shipping has said two bodies found near the sunken Thorco Cloud off Singapore in December have been identified as seafarers from the vessel. Three bodies were recovered on 29 December in the Singapore Strait. One had already been identified as one of the six missing crew. Now Thorco has confirmed the other two were also on the ship. Thorco said: “We are deeply saddened and want to express our sincere condolences to the families grieving the immeasurable loss they have suffered and likewise to the families still in a state of uncertainty." The investigation and potential salvage discussions are ongoing.

Rains improve conditions in Brazil soy belt

Rain in center-west and northern Brazil this week should ease concerns about the soy crop before harvesting, meteorologists said on Monday. Somar meteorologists forecast more than 150 millimeters (6 inches) of rain in the Araguaia Valley, northern Goias, Tocantins, Bahia, and in southern Maranhao a Piaui.

Argentine soy sales after tax cut disappoint government

Argentina's center-right government was disappointed by the volume of soy stocks sold by farmers in the three weeks since it reduced the tax on soybean exports. President Mauricio Macri cut the tax on shipments of soybeans, the country's main cash crop, from 35 percent to 30 percent days after assuming power, while scrapping export taxes on corn and wheat.

Wheat ratings decline in Illinois, improve in Oklahoma

Condition ratings for winter wheat in Illinois declined during December after heavy rains flooded part of the state, but more than half the crop was still seen as good to excellent. The government rated 58 percent of the Illinois winter wheat crop in good to excellent condition for the month ended Dec. 31, down from 67 percent in its previous state report, which was for the week ended Nov. 29.

Payment snag delays French wheat cargoes for Egypt

Three ships due to load more than 180,000 tonnes of French wheat for Egypt were still waiting off France's northern port of Dunkirk on Monday because exporters had not received letters of credit. The shipments are part of tender purchases made by Egypt's state grain buyer, the General Authority for Supply Commodities (GASC), with one cargo due for shipment on Dec. 11-20 and two on Dec. 21-31.

Star Bulk Carriers sell newbuildings for $148m

Star Bulk Carriers said it has sold four capesize bulkers on order in China in a $148m deal. The New York-listed bulker owner, which is controlled by private equity firm Oaktree Capital Management, did not identify the buyer but market sources say John Angelicoussis’s Anangel Maritime Services bought all four.

Hyundai Heavy Industries sets new order target of $19.5bn for 2016

South Korea’s HHI has set a 2016 sales target of KRW21.94trn ($18.53bn) and new order target of $19.5bn, as the company struggles with losses and restructuring in a tough shipbuilding and offshore market. Kwon Oh-gap, president and ceo of HHI, said in his New Year’s address that apart from the seemingly “lofty” sales and new order targets, the group would also need to re-establish a stronger management and continue to secure technological prowess.

China’s government-backed Wuzhou Shipyard declared bankrupt

A Chinese government-backed shipbuilder Zhoushan Wuzhou Shipyard has been declared bankrupt by a local court in Zhejiang province, reports said. Zhoushan Intermediate People’s Court said it has accepted a filing by Zhejiang Shipping Group regarding the bankruptcy of Wuzhou Shipyard, one of its subsidiaries. The latest case makes Wuzhou Shipyard the first state-backed shipbuilder to go bankrupt, as China’s shipbuilding sector undergoes a severe recession. The local court has frozen the assets of Wuzhou Shipyard, which has accumulated debts of approximately RMB911m ($140.3m).

Capesize scrapping hit 30-year high in 2015

Capesize scrapping reached the highest level in three decades in 2015 as demolition activity offered a step in the right direction for the battered market. 90 capesizes sent for demolition in 2015, the highest level in "at least 30 years".

Coffee goes from best to near-worst as rain

Arabica coffee prices dropped 24 percent to end 2015 as one of the biggest losers in the commodities sector, as much-needed rains in top grower Brazil helped boost crops and weak currencies in major producing countries spurred record exports. Second-month arabica coffee on ICE Futures U.S. settled on Thursday at $1.288 a lb. The losses partially offset the meteoric 50-percent rally in 2014.

Mercator Lines (Singapore) CEO submits resignation

Shalabh Mittal has quit as chief executive and managing director of bulker operator Mercator Lines (Singapore). A brief statement on Indian parent company Mercator Ltd’s website acknowledges that he has left the company but does not give a reason for his sudden departure. It noted that he has also ceased to be a non-independent, non-executive director. Mittal, who has held the dual roles at Mercator Lines (Singapore) since 2005, is the eldest son of Mercator Ltd founder and executive chairman HK Mittal. Mercator Lines has had a tough year, with lenders forcing it to sell assets including a trio of Panamax bulkers, the 69,186-dwt Kesari Prem (built 1997), the 74,405-dwt Gauri Prem (built 2007) and the 73,461-dwt Sri Prem Aparna (built 2001) earlier this month. These ships are expected to be handed over to their news owners next month, which will reduce the Mercator fleet to 11 bulk carriers.

One Million Migrants Reach Europe By Sea

The International Organization for Migration has announced that over one million migrants have entered Europe in 2015. Almost all came by sea, and four out of five arrived in Greece. The IOM said that the migration flow was the largest since World War II. Migrant fatalities for the region totaled to about 3,700, or about one half of one percent of the total number of arrivals. As only 5,100 migration deaths were recorded worldwide, the Mediterranean refugee routes are easily the world's most fatal.

Norden sells capesize vessel

The Danish shipowner said it had sold the 176,000 dwt, 2005-built Nord Power and it would be delivered to its new owners at the beginning of 2016. Norden is booking a $12m accounting loss on the sale. The company plans to reinvest proceeds from the sale in panamax or supramax tonnage in line with its “focus and simplicity” strategy.

Three bodies found near wreck of Thorco Cloud

Three bodies have been found near the wreck of the Thorco Cloud, one of which is confirmed as one of the six missing crew members. The Thorco Cloud sank on the evening of 16 December when it collided with the chemical tanker Stolt Commitment in Indonesian waters. Six crew were rescued in the incident, while six were missing after the vessel went down. Thorco Shipping said that over Christmas period rescuers had found three lifeless bodies had been recovered close to wreck of the vessel. One of the bodies was confirmed to be one of the missing crew the company said.

Anbros ship refloated after grounding

An Anbros Maritime bulker was refloated Saturday after running aground in the Delaware River near Philadelphia. The US Coast Guard said it continues to investigate the incident, which involved the Greek owner’s 46,500-dwt Odigitria (built 2001). There were no injuries or signs of pollution. A survey of potential damage to the bulker is ongoing. The Marshall Islands-flagged ship was carrying scrap metal. Classed by Japan’s ClassNK, the ship has insurance from UK P&I Club.

Delay in Panama canal work

The construction consortium tasked with widening the Panama Canal has said that the project could face another six months of delay as a result of slow payment from the government, Giuseppe Quarta, executive director of Grupo Unidos por el Canal (GUPC), told the EFE newswire that the Spanish-led consortium could turn over the project in April but further setbacks are possible as a result in delayed payments from the Panama Canal Administration (ACP) and slow bureaucratic processes. The Panama Canal expansion, the most significant upgrade of the waterway in a century, is 96% complete but has suffered numerous delays. It was originally scheduled to be complete in August 2014.

Europe calls for change to Greek shipping taxes

Brussels on 21 December sent a series of proposals to Athens that Greece is expected to adopt so the country’s law complies with European rules on equal taxation in maritime transport, or else face court action regarding illegal subsidies to shipping. The demands will change Greece’s existing shipping tax system completely, without exempting oceangoing shipping companies currently taxed based on each ship’s tonnage. The EC said it was concerned the Greek tonnage tax system was not well targeted and benefits the shareholders of both shipping companies and other related parties, beyond what is permitted. Companies, which manage merchant vessels such as dry bulk carriers, and tankers can only retain their privileged status if they do not reduce the share of their fleet under EU flags, in a bid to stop companies from resorting to registers of convenience. The EC also maintains said preferential tax treatment should be removed for the Greek cluster’s all-important services sector like insurance intermediaries, maritime brokers and other maritime intermediaries as well as the shareholders in shipping companies, arguing they do not conduct genuine maritime transport activities.

Diana bulker fixed to Cargill on $1.8m deal

A Diana Shipping kamsarmax is set for a reduction in earnings after it was locked into a new time charter with Cargill. New York-listed Diana says the 82,100-dwt Myrto (built 2013) has been taken by the trader for 11 to 13 months. A rate of $6,000 per day has been agreed for the ship, with total revenue from the contract running to $1.8m. The rate is well above the present spot market level for such ships, but down from the $9,850 per day the vessel was earning from its previous charter with Glencore.

Axereal to buy French grain handler from Ameropa

French cooperative group Axereal has agreed to buy regional grain handler Agri-Negoce from Swiss trading house Ameropa to increase its reach in its home market. The financial terms of the deal, which is subject to regulatory approval, were not disclosed.

China has not bought Ukrainian maize since August

China, the biggest importer of Ukrainian maize in the 2014/15 season, has not bought any maize from the country since August despite having signed a loan-for-grain deal. China bought more than 3 million tonnes of Ukrainian maize last season, but has purchased only 330,000 tonnes so far this season. In August China bought around 65,000 tonnes of the commodity.

Noble exits agricultural markets with unit sale to China's COFCO

Noble Group Ltd would sell its remaining 49 percent stake in its agribusiness to China's state-owned COFCO International Ltd, exiting agricultural markets as Asia's biggest commodity merchant seeks to slash debt. The $750 million cash deal will hand COFCO full ownership of Noble Agri, which will be renamed COFCO Agri. It will handle everything from corn to sugar to cocoa and fertilizer, as China, the world's top commodities buyer, seeks greater access to food.

Australia approves Abbot Point coal port expansion

Australia has approved the expansion of an existing coal port at Abbot Point near Bowen in north Queensland. The controversial project will see Abbot Point become one of the world’s biggest coal ports. The expansion will involve dredging one million cubic metres of spoil near the Great Barrier Reef which will then be dumped on land. Conservationists have said the project will have a significant impact on the area’s wildlife and surrounds. The expansion project is key to the success of a coal mine to be built by India’s Adani Mining – the Carmichael project. Adani expects to export coal from the expanded port. Environmental group WWF said 61 hectares of seabed would be “ripped up”, creating the dredge spoil. “It’s disappointing that the minister has approved this project within the [Barrier Reef area], despite the damage it will do,” spokeswoman Louise Matthiesson said. “Damaging dredge plumes will be created harming sea grass and potentially reaching nearby coral reefs,” she added. In an original proposal for the port expansion, the dredge spoil was to be dumped at sea. However, in response to public pressure, that proposal was not approved.

Dry drops close to record territory again

Dry cargo rates again closed on record low levels today with little festive cheer to go around. Declines in the capesize market took the BDI to just 474 points, just three above the historic low set on successive days earlier this month. Capesize rates sat at a painful $3,955 per day on Tuesday, while panamaxes were up fractionally to $3,554 per day. Doug Mavrinac of Jefferies said in a report today: “The dry bulk carrier market weakened during the fourth quarter as Chinese import demand for major dry bulk commodities such as iron ore and coal remained weak while the dry bulk carrier fleet expanded in size during the quarter. “The outlook for the dry bulk carrier market remains weak as Chinese iron ore and coal import demand are expected to remain weak and the major mining companies in Australia and Brazil continue to reduce production growth plans while the dry bulk carrier fleet is expected to continue to expand in size through 2016.”

Russian deputy minister Evgenii Gromyko proposes reducing wheat export tax

Russia's Agriculture Ministry has proposed that the government reduce or cancel its wheat export tax due to rouble volatility and a decline in global wheat benchmarks, citing first deputy minister Evgenii Gromyko. The rouble has lost about 6 percent against the dollar since the start of December on sliding oil prices and has triggered a rise in Russia's floating wheat export tax.

US lifts 40-year ban on crude exports

The 40-year ban on crude oil exports from the United States has now been eliminated, as part of the $1.1trn bill, which fixes the US government’s budget through late 2016. Just prior to adjourning for their holiday break, the US Congress passed the bill, which was signed into law by President Obama.

Oldendorff buys fourth bulker in a week

Germany's Oldendorff Carriers has secured a Japanese controlled post-panamax bulker at a knock down price. The Imabari-built 88,000-dwt Ikan Kurau (built 2006) has been acquired from Shoei Kisen for just $6.2m. Oldendorff had bought three bulkers from Greek owner Paragon Shipping. The German owner is believed to have paid $15.5m enbloc for the 74,000-dwt Diamond Seas (built 2001) and Pearl Seas (built 2006) plus the 53,000-dwt Sapphire Seas (built 2005).

France widens bird flu restrictions to tackle outbreak in southwest

France tightened sanitary measures and restricted movement of poultry across part of the southwest as it tries to contain its first bird flu outbreak in eight years that threatens to hit exports. The government has established a broad restriction zone around the areas in which 30 cases of highly pathogenic bird flu have been detected since late November.

U.S. spending bill includes repeal of meat labeling rule

The U.S. Congress passed a broad 2016 spending package that includes the repeal of a meat labeling law in order to avoid more than $1 billion in trade retaliation by Mexico and Canada. The omnibus spending bill is on its way to President Barack Obama to be signed into law. U.S. trade groups supported scraping the country-of-origin-labeling rule on beef, pork and poultry after the World Trade Organization recently ruled they discriminated against imported meat.

Argentine grain farmers slowly start selling after devaluation

Argentine farmers are slowly starting to sell their soy and corn stockpiles now that newly elected President Mauricio Macri has devalued the currency and needs export dollars to help rev up central bank reserves left thin by the previous government. Macri lifted currency controls that had been in place since 2011, letting the peso devalue by 26.55 percent against the U.S. dollar in a bid to boost exports and jump-start the economy.

Louis Dreyfus seeks buyers for juice and fertiliser units

Louis Dreyfus Commodities is seeking buyers for its orange juice and fertiliser units as the global merchant focuses on higher-margin activities, the latest firm to take steps to weather weak commodity markets. The company had been actively marketing the orange juice and fertiliser businesses for some months, having appointed banks to lead the sales processes. Another source said the trading group was also looking to spin off its metals and dairy businesses.

Rio Tinto renews Sideris GS charter

Diana Shipping said it will extend an existing time charter for a capesize, but at a rate 35% lower than its previously announced level. The Sideris employment extension should generate approximately $2.54m of gross revenue for the minimum scheduled period of the time charter, Diana said. Rio Tinto had last fixed the Sideris in February for a 10 to 14 month tenor at $10,000 per day. The fixture comes amid an overall still weak environment for capesize rates. On Friday, the Baltic Exchange’s index of worldwide capesize freight rates fell to 524, its weakest since 17 April.

Russia, China sign on grain quality control

Moscow and Beijing have signed agreements on the control of grain quality, which technically open the Chinese market to Russian grain. Russian food safety watchdog Rosselkhoznadzor and the Chinese government body in charge of quality control signed two food safety documents on Russian wheat, corn (maize), rapeseed, soybean and rice supplies at a ceremony in Beijing.

Big wheat volumes from EU

Wheat production in the European Union has seemingly entered a new realm thanks to big yields, and this trend may continue for a third consecutive year in 2016. The EU produces, consumes and exports the largest volume of wheat in the world. The highest-yielding wheat on the planet is also grown in Europe.

China accepts anti-dumping petition against U.S. distiller's grain exports

China has formally accepted a petition from Chinese producers of distiller's dried grains seeking anti-dumping duties on imports of the feed ingredient from the United States. The producers are also seeking countervailing duties, also known as anti-subsidy duties, on the DDGS imports. The U.S. embassy received notification of Beijing's acceptance of the petition on Dec. 15, it said.

Courage scraps bulker

Hong Kong owner makes $3.86m loss on sale of 1997-built bulker for demolition. Hong Kong’s Courage Marine is booking a loss of $3.86m from selling a veteran bulker for scrap. It said the 72,000-dwt Courage (built 1997) has gone to Liberia-registered Autumn Harvest Maritime for $2.48m, compared to a carrying value of $6.23m. The company paid $8.6m for the ship in January 2014, but called the disposal price “attractive” in current market conditions.

Seanergy Maritime Holdings $1m net loss

Seanergy Maritime Holdings reported a $1m net loss for the third quarter as the Athens-based company ramped up fleet size amid a challenging market for dry bulk operators. Seanergy reported a $0.02 per share loss for the third quarter while vessel revenue was $2.6m for the quarter. The Stamatis Tsantanis-led company agreed to acquire seven second-hand ships during the third quarter, five capesize and two supramax vessels, adding to the company’s single capesize vessel. Seanergy took delivery of two vessels during September, with the remainder delivered during the fourth quarter.

India's sugar stockpile to deplete by a quarter as exports rise

India is likely to start the 2016/17 marketing year with 6.7 million tonnes of sugar, 26.4 percent lower than at the beginning of the current year, as rising exports will pull down inventories in the world's second biggest producer. The higher Indian exports will put pressure on global prices, but harden the local market and help mills pay farmers at the support levels set by the state for sugar cane.

Fearnleys Dry Bulk Weekly Report

Capesize All-time low and seemingly no immediate end to the misery. Volumes on the Brazil/China iron ore marker trade are very far from expectations, and resultant levels are down another 18% w-o-w to around USD 11500/day. Spot coal trades remains negligible, and modest iron ore volumes on the Waust/China run simply cannot absorb the number of units still trading. Both index, down 33% last 5 trading days to come in at USD 5k/day, and actual daily return (which is lower), indicate increased idling/layup and finally scrapping to be expected. Forward curve is still one of backwardation, and period business is concluded sub-OPEX. Panamax We are now facing all time low’s on the BDI and we touched the all time low in the Pmax market as well. There is not a whole lot of optimism to report in the market. Some cargo players are selling off before year end, thus we see more cargoes out of USG/USEC and Baltic, allthough the tonnage is outnumbering cgos and offering in belw last done. TA’s are now paying ard USD 3k, and Fhauls from ECSA fixing at ard USD 5,500 + USD 150k GBB. In the Pacific we see similar lvls for the rounds ie 3-3,5k and although the magic 6k marker got shaded for 1 year period we now see ows willing to fix 5,5-5,750 for 11/14 mos. Handy Supras seem to be hitting bottom. There is even talk of cold layup as owners are not willing to continue to trade at present levels. With returns well below opex, this may be quite possible. In the Far East, the open ship count was about the same as last week, resulting in a flat market. The Atlantic has not had much to show either, with the front haul market from South American almost not commanding a Ballast Bonus and Rounds returning below USD 4000 there has been little to celebrate.

Analysts have cut their 2015/16 center-south Brazil sugar output

Analysts have cut their 2015/16 center-south Brazil sugar output and sugar content forecasts because of heavy rains in the fourth quarter, signaling tight availability in the inter-crop period between December and March. Data provider Platts Kingsman on Tuesday cut its cane production estimate for the 2015/16 (April/March crop year) to 594.0 million tonnes from its previous estimate of 599.1 million tonnes.

Lack of snow puts crops in danger worldwide

The extent of snow across the Northern Hemisphere is alarmingly low, especially considering the increased risk of much colder weather come January. North America, Europe and Western Asia have all been consistently 5 to 10 degrees Fahrenheit warmer than average over the past month. Record warmth across the Eastern United States last weekend had residents enjoying weather more typical of late summer.

China's COFCO in talks to take full ownership of Noble's agribusiness

China's food giant COFCO is in advanced talks to take full ownership of Noble Group's agribusiness, a move which would cement its newfound strength in global agriculture markets and help bolster Noble's balance sheet. The sources said COFCO was in talks to buy the remaining 49 percent of Singapore-listed Noble's agribusiness for around $700-$750 million, having already acquired a 51 percent stake in April 2014 for $1.5 billion.

Japan offers to buy wheat via tender

Japan’s Ministry of Agriculture is seeking to buy a total of 123,275 tonnes of food quality wheat from the United States and Canada in a regular tender that will close late on Thursday. Japan, the world’s sixth-biggest wheat importer, keeps a tight grip on imports of the country’s second most important staple after rice and buys the majority of the grain for milling via tenders typically issued three times a month.

ADM expands in Egypt

Archer Daniels Midland Company (ADM) has agreed to acquire a 50% stake in Cairo-based company Medsofts Group. The move gives it access to an Egyptian company with regional stevedoring and storage operations and inland logistics capabilities. The new 50-50 joint venture will own and manage an operation that handles more than 1.5mt of grains, oilseeds and soft commodities annually destined for the Middle East and North Africa. It also offers a local grain distribution operation, serving customers in Egypt; and an inland logistics network that links port operations to customers throughout the country.

Baltic Dry Index sinks to new low benchmark

A slump in capesize rates today dragged the Baltic Dry Index (BDI) to a new record low. Tuesday’s mark of 484 points represents the third time that a new trough has been set during 2015. The figure breaks the previous record of 498 points in November and is only the second time in history that the BDI has read less than 500 points. While the pain is widespread across the market, a 99 point fall in the Baltic Capesize Index did the damage today.

French bird flu poses no risk to humans

The bird flu virus found in five regions of southwest France over the past three weeks has no risk of spreading to humans, the French farm minister Stéphane Le Foll said, basing his statement on a study released by the food and health agency. Two new outbreaks of bird flu were detected in the Landes and Dordogne departments, bringing the total number to 15, involving three different strains: H5N1, H5N2 and H5N9.

Argentina's Macri ditches wheat, corn, beef export taxes

Argentine President Mauricio Macri said he would sign a decree on Monday eliminating corn and wheat export taxes as part of his plan to revitalize the country's massive farm sector after years of antagonism with the government. The decree will also cut the export tax on soybeans, the country's main cash crop, from 35 percent to 30 percent.

Exporters launch price war for Ivory Coast cocoa supplies

Cocoa exporters in top producer Ivory Coast are paying high premiums to suppliers in an effort to secure scarcer beans and fears that especially harsh Harmattan weather could make things ever worse. After a solid start to the 2015/16 season, arrivals at Ivory Coast's ports of Abidjan and San Pedro have fallen behind last year's levels, raising concerns among exporters that they will struggle to fill contracts.

Australia wheat regains Asia market share on competitive prices

Australian wheat is making a comeback in Asia, with buyers in the region locking in supplies for early 2016, as prices have dropped below that of cargoes from the United States and Canada. Asian buyers, including Indonesia - the region's biggest importer of the grain, have signed deals to take Australian wheat right up to February and are now in the market negotiating deals for March delivery.

Baltic Dry Index 10 points off the bottom

A decline in the capesize market on Monday left the Baltic Dry Index (BDI) hovering just 10 points above a record low set last month. Capes retreated by over 7% today to haul the BDI down to just 508 points, within touching distance of the trough of 498 points set on 20 November. The capesize spot market at $6,300 per day on Monday, down 7.4% from Friday and below the $8,000 per day average for 2015. Chinese iron ore imports increased in November to 82 million tonnes but noted vessel tracking data suggested Brazilian exports had again reduced. Panamaxes and supramaxes were largely unmoved at $3,300 and $4,700 per day respectively. Chinese coal imports picked up to 12.6 million tons in November but the overall trend in the market remains negative.

U.S. lawmakers ask Obama administration for cotton price support

One hundred U.S. congressmen from cotton-growing states are pressing the Obama administration for price supports to help struggling U.S. farmers, in the first push to introduce new subsidies since losing a trade case with Brazil last year.The House of Representatives members have signed a letter urging Secretary of Agriculture Tom Vilsack to allow cottonseed, a secondary product of the crop valued mainly for its fiber, to qualify for subsidies available to other oilseeds.

Tighter Brazilian sugar supplies augur slowing exports

Tightening Brazilian sugar supplies as the centre-south harvest wraps up signal slowing Brazilian exports early in 2016, creating opportunities for Central American sales on the world market. Brazilian raw sugar has been offered at shrinking discounts to world ICE raw sugar futures.

France is heading for a wheat overload

France may become inundated with wheat in 2016, as if that were not already the case. France grows 27 percent of the European Union’s wheat, and is the fifth-largest wheat-producing country in the world. It is a primary supplier to North African countries such as Algeria.

USDA to tighten regulation of biotech wheat trials

The U.S. Department of Agriculture next month will tighten regulations for field trials of genetically modified wheat. The USDA's Animal and Plant Health Inspection Service said it will require developers to apply for a permit for field trials involving biotech wheat planted on or after Jan. 1. Since 1997, such trials have been authorized by notification, a less stringent process.

Iron ore slips to record low as rout deepens

Iron ore futures in China dropped to their weakest on record on Thursday amid expectations falling steel consumption in the world’s biggest consumer could shut more producers, cutting demand for the raw material. Cash iron ore fell to a fresh decade-low at just above $38 a tonne on Wednesday, bringing its year-to-date decline to more than 46 percent, far more than crude oil and copper that are similarly hit by oversupply.

Indian utilities’ Apr-Nov thermal coal imports fall 9% on year

Indian power utilities imported about 54.4 million mt of thermal coal during the April-November period, down 8.8% from the same period last year, according to latest data from India’s Central Electricity Authority, or CEA. Of the total quantity, 25.3 million mt was imported by 34 utilities for blending with domestic coal, while 29.1 million mt was imported by eight utilities for power plants that used only imported coal.

Cosco and China Shipping merger gets State Council approval

The merger of Cosco and China Shipping has been given the go ahead by China’s State Council. The shares of Cosco and China Shipping, and listed subsidiaries have been suspended since August pending an announcement, when news of merger talks first came to light. China’s State Council had approved the merger and the two companies were expected to make an announcement on the next step in their in plans to come together. According to the report the merged entity would be known China Cosco Shipping Group and be headquartered in Shanghai.

Vale sells four VLOCs

Brazilian miner Vale has concluded a deal to offload four Valemax bulkers to a consortium led by China’s ICBC Financial Leasing. The company said on its website that the buyers are paying $423m in total for the 400,000-dwt VLOCs.

Louis Dreyfus Commodities and Cargill operate a grain terminal at Santos Port for 25 years

Louis Dreyfus Commodities and Cargill won an auction on Wednesday to operate a grain terminal at Santos Port for 25 years, while Fibria SA and Marimex won rights to operate pulp areas there leased from Brazil's government. The three port areas were the first of 93 nationwide that the government hopes to auction under a 2012 law. Wednesday's auction brought 430.5 million reais ($114 million) in concession fees to President Dilma Rousseff's cash-strapped government, far less than the roughly 600 million reais it had expected.

U.S. corn supplies rising as export outlook dims

The U.S. Department of Agriculture upwardly revised its outlook for domestic corn supplies by 25 million bushels, more than analysts were expecting, due to weakening export demand.U.S. stockpiles of soybeans and wheat were left unchanged, the government said in its monthly supply and demand report.

Fearnleys Dry Bulk Market Report

Capesize There is a steady supply of cargoes out of West Australia but despite of this, rates are getting softer. Present level is just above usd 4 pmt. Fixing activity out of Brazil is getting less, with more talks than real action. The level remains steady on this trade and the big question is when Vale will be done for this year. Atlantic in general is well balanced, with a time charter level for a transatlantic round close to USD 9000 daily. Panamax The segment is in a steady decline with reduced activity across the board. It has been an extremely quiet week for the Panamaxes in both hemispheres and rates keen on dropping to all time low levels. Transatlantic business is scarce with most rounds bss APS only in the 6000-7000 range with no BB. Voyage levels are under pressure, and USG fronthaul under 22 for spot and 19 forward. ECSA business not a safe heaven for ballasters, with APS levels in the 6 + 150 GBB range. Far Eat is in the dark doldrums with levels APS 3 + 30 for Indo rounds and 4 + 125 for NOPAC. The forward curve is flat and in the mid 5's for Cal -16, and owners are willing to fix at even less for about 1 year. Handy Another lacklustre week for the Supra segment. The average rates keep falling to the tune of abt USD 100 per week. The period market remains thin, but there are some Ultramax owners willing to cover in the USD 6000's level for abt a year. There is some anticipation relating to the lifting of some export taxes in Argentina, but it is uncertain how big an effect this will have on the market. There have been some COA's concluded in the last week and owners are not asking for premiums going through 2016, indicating a definite lack of confidence for the upcoming year.

Brazil corn exports full speed ahead

Despite more rains in the forecast Brazilian corn exports set a record high volume in November, December corn exports are likely to rise nearly 10 percent from the previous month. Since the beginning of November, the delay for bulkers waiting to load outside Brazil's second largest corn port, Paranagua, has lengthened from 43 days to 56 days.

Hansa Heavy Lift opens new offices in Dubai and Brazil

Hansa Heavy Lift has continued its expansion globally with new offices in Dubai and Brazil. The new office in Dubai is the company’s first in the Middle East and sees it looking to take advantage of the growth in infrastructure, offshore, and oil and gas markets in the region. The office in Rio de Janeiro will support the company’s existing office in Sao Paulo and focus on the oil and gas and energy markets in Brazil.

Greek owner confirms disposal of three bulkers to pay off $38m loan with Commerzbank.

Greek owner Paragon Shipping has confirmed the sale of three bulkers to pay off a loan with Commerzbank. The US-listed company said it would clear the remaining $38.23m of a $57m facility with the lender. The bank will take the net proceeds from the disposal of the the Namura-built, 74,300-dwt Diamond Seas (built 2001), Hudong-built, 74,500-dwt Pearl Seas (built 2006) and Xiamen-built, 53,700-dwt Sapphire Seas (built 2001), on which it holds mortgages.

DryShips’ losses near billion-dollar mark

Financial fallout from slumping bulker rates has topped off enormous impairment charges at George Economou’s DryShips, which is in the process of selling most of its fleet. On 7 December, the NASDAQ-listed shipping company posted a net loss of USD820 million for 3Q15, driven by a USD797.5 million impairment charge. Losses in the first nine months of this year totalled USD970.7 million.

Eight countries suspend French poultry imports after birdflu outbreak

Eight countries, including Japan and Morocco, have suspended imports of French poultry after the deadly H5N1 bird flu virus was detected in southwestern France, home to many foie gras and poultry producers. The highly pathogenic H5N1 virus killed 22 chickens out of 32 kept in a family backyard at Biras in the Perigord region. It was the first outbreak in eight years to hit the European Union's biggest agricultural producer.

Russia closer to self-sufficiency in sugar, imports slide

Russia, once the world's biggest raw sugar importer, will slash its imports by more than expected in 2015/16 after a bumper beet harvest, moving the country closer to self-sufficiency. Russia's harvest is expected to be close to a record due to attractive domestic sugar prices, a larger planted area and favourable weather.

France reports three more bird flu cases in southwest

France reported three more cases of highly pathogenic bird flu in the southwest of the country on Monday, as the European Union's biggest agriculture producer tries to contain its first outbreak of the disease in eight years. Reinforced monitoring since the detection of bird flu at three locations in the Dordogne region led to the discovery of another case at a duck and chicken farm in the region.

India sugar mills prioritise whites exports as cane subsidy confirmed

Indian sugar mills are prioritising exports of low-quality white sugar and could focus on raw sugar exports early in 2016 after the government confirmed it will pay a cane production subsidy. An official notification published in the Gazette of India, dated Dec. 2, confirmed a cane production subsidy will be payable to farmers after mills export 80 percent of their quotas. The subsidy will be 45 Indian rupees ($0.7) per tonne.

Good weather improves Ukraine winter wheat crops

About 83 percent of Ukraine's winter wheat area sown for the 2016 harvest had sprouted as of Dec. 3 due to favourable weather but nearly a third of the crops are in a poor state. A severe drought in the summer and autumn in half of Ukraine's grain region forced farmers to halt winter grain sowing, leading to concerns about a poor grain harvest in 2016.

Nigerian cocoa grinders say face fight for survival

Nigeria, already hit by low oil prices, faces a threat to its cocoa sector with industry officials saying its few remaining grinders could close.The rise in the cost of raw beans coupled with a sharp depreciation in the naira currency made it unattractive for them to tap export demand for butter, grinders say.

Four state-owned Chinese yards share VLOC order spree

A $1.85 billion order for 20 very large ore carrier newbuildings has been shared between four state-owned Chinese yards. Shanghai Waigaoqiao Shipbuilding, Qingdao Beihai Shipbuilding Heavy Industry, Bohai Shipbuilding Heavy Industry and China Merchants Heavy Industries will build the ships for China Ore Shipping and China Merchants Energy Shipping. Each company is signing up for 10 newbuildings of 400.000 dwt on the back of 25 year COAs with Brazilian mining company Vale.

Owners burn cash with capesize

The spot market for capesize bulkers continued its painful fall this week, with rates now far from covering operating costs. Avarage rates stood at $5600 per day, or $2000 per day short of the operating figure. So far, there are no signs of owners putting ships into cold layup but brokers say it is just a matter of time before this happens.

Vale is planning to sell its last owned Valemaxes

Vale is reportedly planning to sell its last owned Valemaxes, its very large ore carriers (VLOCs). The sale-and-leaseback transactions would “improve the balance sheet while guaranteeing long-term low cost freight agreements”, according to presentation slides for an analyst meeting in London today. The sales are expected to generate $1.1bn. Finance chief Luciano Siani said the company expects the sales prices for the ships to be around the $110m earned on each prior Valemax sold. “The price should be about in the same range going forward,” he said in a webcast press conference. “The major driver for us is to get competitive freight rates on the leaseback agreements.”

Turkey looks for non-Russian grain as new deals with Moscow are on hold

Turkey is looking for alternatives to Russian grain after the dispute between Moscow and Ankara over the shooting down of a Russian warplane placed a question mark over future deliveries and put new deals on hold. Russia has not so far interfered with grain exports to Turkey, the largest buyer of Russian wheat, and vessels are departing Russian ports as normal apart from a few minor difficulties at some terminals.

Syngenta wins USDA regulatory approval for GMO corn trait

Syngenta AG cleared one U.S. regulatory hurdle toward domestic marketing of corn seeds containing a trait that is genetically engineered to resist weed killers including glyphosate. The U.S. Department of Agriculture's Animal and Plant Health Inspection Service (APHIS) said it will no longer regulate the Syngenta Seeds corn trait known as MZHG0JG.

Latest World Crop Updates

Planting pace, recent and expected profitability and initial soil moisture set 2016/17 US winter wheat production at 41.3 million tons, up 10% from last season. In Canada, yields reported by provincial agencies and surveyed elevator operators, and StatCan's revisions to 2014/15 production raise 2015/16 wheat and rapeseed production to 27.1 and 15.1 million tons. Lower plantings reduce 2016/17 Ukraine wheat production to 24.0 million tons, but favorable weather over the past month maintain a wide range of potential production. In Malaysia, high October output raises 2015 crude palm oil production to 20.4 million tons while El Niño impacts and low initial soil moisture in East Malaysia could lower 2016 production by 1 to 2 million tons. Near normal planting conditions, government support policies and lower wheat prices set 2015/16 China wheat production at 129 million tons while in Argentina, favorable soil moisture raises 2015/16 soybean and corn production to 61.1 and 28.7 million tons.

BHP to cut 36 percent of jobs at Olympic Dam

BHP Billiton believes there will be a "significant" shortage of copper supply by 2020 and forecasts that the Olympic Dam mine will be operating at record rates within a year. Olympic Dam's best year was in 2014 when it produced 184,000 tonnes of copper. However, BHP said on Wednesday the South Australian mine would produce more than 200,000 tonnes per year sustainably by 2016 and reach 220,000 tonnes annually by 2019.

FEARNLEYS DRY BULK MARKET REPORT

Capsesize Trans Atlantic market has been pushed up till earlier this week. For vessels opened in North Atlantic, hire went up to 8500-9000 USD level for one TCT in Atlantic. With a bit fewer ballasters to Brazil, the Tubarao/Qingdao freight rate was also going up to high 9 USD. 20,000 USD/day was reported for vessel open in Atlantic for one trip via Narvik to PMO/Japan range. However, the Pacific side was not as positive as the Atlantic. Though rates went up to very high 4 USD for west Australia to Qingdao, and tc hire went up to 8000-9000 USD/day earlier, rates for west Australia to Qingdao dropped again sharply and quickly to low 4 USD. Panamax The Panamax market remained uninspired with little light for owners with open vessels in both basins.Lack of new fresh orders either coal, iron ore, bauxite, fertilizers or grain giving the charterers the upper hand to pick and choose out of open tonnage. North continent was the only exception where early prmpt ships found employment instead of ballasting. Atl paying typically from USD 2500/3000 p/d. Fronthaul from ECSA to Feast paying in the low 6 + 180.000 bb now. In the pacific we see falling activity and rates arnd 3000 USD. Period activity very limited with index heading against a new all time low. 4/8 months concluded at tic over 5000 daily. 1 year deals would probably pay arnd USD 5500 if concluded at all. Handy Supramaxes seem to have found a bottom. This is the case in both basins and although there is no effective period market, vessels are demanding slightly better numbers and getting same. The question is will it last and with the holiday season approaching we may see rates start to come off again as owners seek cover. Forward numbers are still under pressure, and although there is still some contango, there is not much freight optimism though next year.

Ukraine may benefit from Russian ban on Turkish food-analyst

Russian trade measures against Turkey may give Ukraine a chance to regain its position in the Turkish food market. Russian Prime Minister Dmitry Medvedev approved on Tuesday sanctions against Turkey in retaliation for the downing of a Russian warplane.

El Nino rains complicate corn loading at Brazilian ports

Heavy El Nino rainfall in southern Brazil is causing problems for companies trying to load large volumes of corn from the world's No. 2 exporter. The Brazilian ports of Santos, Paranagua, Tubarão and São Francisco are responsible for the bulk of shipments from the country's record 2014/15 corn crop, a harvest made more attractive to foreign customers because of the weaker Brazilian currency.

Jan De Nul wins USD225 million Panama contract

The Belgium dredging giant, together with Italy-based global engineering and construction company Saipem, will massively expand PSA’s terminal on the western bank of the Panama Canal's Pacific entrance, increasing its capacity from 450,000 teu to 2 million teu.

Drone ships on the horizon

Drone cargo ships, known colloquially as ‘ghost’ ships, are unlikely to start operations within the coming decade and an intermediate step of partially automated ships with much reduced crew levels should be expected beforehand.

Torm in first newbuilding order since 2008

Back from its restructuring Torm has returned to the newbuilding market for the first time since 2008 ordering four LR2 product tankers, with options for six more vessels, at Guangzhou Shipyard International (GSI). Torm is splashing out $200m on the LR2 newbuildings to be delivered between the fourth quarter of 2017 and the second quarter of 2018. The shipowner has also taken options for six more vessels of either LR1, LR2 or MR tankers for delivery in 2018 and 2019 from GSI.

Yangzijiang seals order for two self-unloading bulkers

China’s Yangzijiang Shipbuilding has secured an order to build two self-unloading bulk freighters for Canada’s Algoma Central. The contracts for the new Equinox Class 29,400 dwt ships were firmed up on Monday after they were made effective with the delivery of refund guarantees by the shipyard. “Our search for a shipyard in China to replace the now-bankrupt Nantong Mingde Heavy Industries led us to Yangzijiang,” said Ken Bloch Soerensen, president and ceo of Algoma. The newbuildings are scheduled for delivery in the first half of 2018.

Scorpio should sell more capes

Scorpio Bulkers should sell its last remaining five capesize bulkers to extend its cash runway, a top analyst has advised. “At the current rate of forecast cash burn we estimate Scorpio could breach its minimum liquidity covenant in the third quarter of 2018,” says UBS analyst Spiro Dounis. “In order to extend the runway to the end of 2019 we believe the shipowner needs to sell the remaining five capesizes vessels.”

Lithuanian Shipping filed bankruptcy again

Struggling bulker owner Lithuanian Shipping Company (LSC) has filed for bankruptcy for the second time in four months. The shipowner said in a statement its general director had requested a start to proceedings at the district court of Klaipeda. It first filed in July, but was rescued by the country’s government, which arranged a loan of EUR 3m ($3.18m) from SEB Bankas. Stasys Dailydka, the CEO of its controlling shareholder state-run Lithuanian Railways, said the bankruptcy was inevitable.

Colombian Coffee Growers Federation to consider stabilization fund

The Colombian Coffee Growers Federation said on Monday it will consider whether to set up a stabilization fund for internal coffee prices, to help farmers offset unexpected declines in income due to international price volatility. Growers will debate the proposal at their annual congress in Bogota this week.

Vietnam's 2015/16 coffee output expected to drop 10 pct y/y

The world's largest robusta producer, Vietnam is forecast to produce 1.08 million tonnes, or 18 million 60-kg bags, of coffee in the current 2015/16 crop, down about 10 percent from the previous crop. "With prices lower, growers have not taken enough care of the trees," said Chairman Luong Van Tu of the Vietnam Coffee and Cocoa Association, adding that a large proportion of old coffee trees had also added to lower yields.

Jinhui books $32m loss

Jinhui Shipping and Transportation has seen its net loss for the third quarter come in at more than double those of a year ago. The Hong Kong and Oslo-listed shipowner booked a loss of $32m for the three months to 30 September versus a loss of $15.7m a year ago. It blamed the loss on the weak freight market as well as an unrealized loss of $21.9m on its investment portfolio following the abrupt correction in global stock markets.

Argentina will abolish wheat, corn export taxes

Argentina's incoming government will abolish export taxes on corn and wheat the day after it assumes office and reduce the export tax on soy by 5 percent. President-elect Mauricio Macri won the election last Sunday on a platform of wholesale change. He has vowed to end interventionist measures like these taxes that have hobbled growth in Latin America's third largest economy.

Brazil to sue BHP, Vale for $5 bln in damages for dam burst

Brazil's federal and state governments plan to sue the owners of the Samarco iron ore miner for 20 billion reais ($5.24 billion)in damages caused by the burst of a tailings dam, Environment Minister Izabella Teixeira told reporters on Friday. Samarco is a joint venture between the world's largest mining company, BHP Billiton Ltd, and the biggest iron ore miner, Vale SA.

China copper smelters agree to cut production in 2016

Nine large copper producers in China have agreed an initial plan to cut refined metal production by more than 200,000 tonnes in 2016 or around 5 percent from this year's level. The agreement followed a meeting by the producers on Saturday in Shanghai to discuss coordinated output cuts to support the market after prices in Shanghai and the London Metal Exchange plunged to their lowest in more than 6 years.

Fearnleys Dry Bulk Market Report

Capesize The bloodbath continues, despite healthy activity on the Brazil/China iron ore marker trade last few days. Average daily earning for standard 180000-tonners dipped as far as USD 5k before stabilizing at a sad USD 7k, still hardly covering opex and describing a Q4 development extremely far from (other) analysts predictions. This segment remains overtonnaged as mineral trades into China fail to meet expectations, and dramatically increased scrapping more and more appears the only way to get back to equilibrium. Medium-term FFA's are backwardated, forcing some owners under pressure with few options except concluding period at unprecedented lows - last exemplified by 175000dwt/blt 2010 done for 11-15 months at USD 7k. Panamax A fair flow of fresh requirements early week managed to bring a tiny scent of optimism in the market. Also, Owners resistance to contribute to fix all time low levels have resulted in some small improvements. “For how long” is a common expression among the players. T/A rounds up to above 3.000/day. Fronthaul close to 9.000 although USG/PRC grains only paying arnd 26. ECSA activity limited and challenging for Owners, where fixtures are done from mid 5 to mid 6 + 190 APS. NOPAC rounds and Aussie->India done well above 4.000 on Kamsarmax. Shorter runs in the eastern hemisphere still in the low 3 + a small BB bss APS. Period market has not improved either on levels or volume. Short/medium period still under 6.000/Day. Handy The Supra market continues in the doldrums. There is no short period market, and the levels available for longer period are unattractive to owners. Even though the number of vessel apparently open prompt in SE Asia has halved in the last week, there is no sign of improved rates. This has been attributed to owners “hiding” vessels and thus the picture is not entirely correct. In the Atlantic the numbers continue to be depressed, and not immediate sign of any recovery. We can only hope that grains from South America will add sorely needed ton-miles to the market. The question is if this will be at the expense of other supply areas due to slow demand for soya beans.

Nicaragua canal construction start delayed to late 2016

China's HKND Co. said it is delaying the start of construction on a controversial $50 billion inter-ocean canal across Nicaragua until late 2016. China's Hong Kong Nicaragua Development (HKND) Co. obtained approval for environmental studies of the canal earlier this month. But on Wednesday, a company statement said, "The construction of locks and the big excavations will start toward the end of 2016." The company gave no reason for the delay, but said, "The canal's design is currently being fine-tuned."

Jordan cancels tender to buy 100,000 tonnes wheat

ordan’s Ministry of Trade and Industry canceled for the second time a tender to buy 100,000 tonnes of wheat. The wheat was being sought for shipment during the second half of February and the first half of March, but traders said no offers were made. Jordan had also received no offers on Nov. 18 when it initially tendered for the amount. Jordan has canceled several tenders in recent months due to a lack of offers, with traders blaming strict tender terms on inspection and payment, although the country did announce a purchase of both wheat and barley earlier this month.

Bimco releases new anti-corruption chartering clause

Bimco has launched an anti-corruption clause for charter parties designed to protect owners and charterers against demands for illegal payments from port officials and others. The clause applies the anti-corruption laws to each of the parties and the local law of the place where the ship is located, and gives a mechanism for owners to issue a note of protest if an illegal demand is made and is not withdrawn. The note then triggers a co-operative response by charterers and owners to the demand. The clause states that if an owner issues a protest to resist a demand and the ship is delayed, the charterer cannot place the ship off-hire.

Thermal Imaging for Coal Safety

Mitsui O.S.K. Lines has introduced a thermal imaging system commercialized by FLIR Systems Japan K.K. on MOL group-operated coal carriers. The system, which relies on infrared cameras, helps prevent spontaneous combustion of coal in the cargo hold. Coal can oxidize, generating heat during transport and cargo operations. This can result in fires in the cargo hold or at unloading stock yards. The cameras allow the crew to quickly pinpoint and visualize high temperatures and combustion spots using infrared sensors, not only in the cargo hold but also in other areas of the vessel, allowing remote monitoring of the engine room.

Fredriksen swaps capes for suezmaxes

John Fredriksen’s Frontline has snapped up two newbuildings from sibling Golden Ocean following their conversion from capesizes to suezmaxes. Oslo and New York-listed Frontline will pay $55m for each of the ships that are under construction at New Times Shipbuilding. Frontline will take delivery of the suezmaxes in the first quarter of 2017.

Canpotex CEO sees potash terminal expansion decision late 2016

The new chief executive of Canpotex Ltd expects the Canadian potash trader to decide around late 2016 where to expand West Coast terminal capacity, a move that could give it a faster route to Chinese buyers in a highly competitive market. Options include building a C$775 million ($580.61 million) terminal at Prince Rupert, British Columbia, which would allow Canpotex to bypass busy Port Metro Vancouver and cut shipping times to China by two days.

Argentina in for a radical post-election grains output increase

By the end of President-elect Mauricio Macri's first four-year term, Argentina will have doubled wheat shipments and surpassed Russia and Brazil as a corn exporter, as the abandonment of years-long trade restraints unleashes the full potential of the country's vast Pampas farm belt.Opposition leader Macri beat ruling party candidate Daniel Scioli in Sunday's election, effectively ending the eight-year, production-sapping feud between farmers and outgoing President Cristina Fernandez, who clamped down on shipments of food-related grains in a bid to damp double-digit inflation.

Cheaper French wheat to sail to Indonesia

France is set to export wheat to Indonesia for the first time since the 2008/09 marketing season after private animal-feed companies were attracted by unusually competitive French prices.A first vessel for Indonesia is due to load at the northern French port of Rouen this week with close to 50,000 tonnes of wheat, adding that other cargoes could follow in the coming weeks, mostly in December.

Saskatchewan seeks price protection in altering potash taxes

Potash-rich Saskatchewan hopes to revise its taxes on production of the crop fertilizer to avoid big revenue drops in years when prices sag. Saskatchewan, home to mines operated by Potash Corp of Saskatchewan, Mosaic Co and Agrium Inc, is conducting its first full review in 10 years of its complex potash tax and royalty structure. It is currently weighted more by potash prices than output.

Syngenta sues Cargill, ADM in GMO corn fight

Swiss seed company Syngenta AG has sued top U.S. grain exporters Cargill Inc and Archer Daniels Midland Co over losses that U.S. farmers said they suffered from rejections of boatloads of genetically modified corn by China. The lawsuit, filed on Thursday in U.S. district court in Kansas, comes after Cargill, ADM and hundreds of farmers sued Syngenta last year to recover damages linked to the rejections, which began in late 2013.

Baltic Dry Index falls below 500 points for the first time ever

The rout of the dry bulk shipping market continued on Friday with the Baltic Dry Index (BDI) dropping below 500 points for the first time ever. Following hitting a record low of 504 points on Thursday the BDI continued to weaken on Friday losing a further six points to close at 498 points, the first time index has ever fallen past the 500 point level. Rates were down across the board in terms of ship size with the Baltic Capesize Index down 13 at 606 points, the Baltic Panamax Index losing five point to 463 points and the Baltic Supramax Index falling seven points to 472 points. Its marks new low in what has been a dreadful year for dry bulk shipping despite market optimism in Q4 2014. The average spot TC rate on Friday for capesizes averaged just $5,211, well below operating costs, compared to $22,990 per day one year earlier.

FEARNLEYS DRY BULK MARKET REPORT

Capesize Market keep dropping further and unfortunately there is not many signs of possible improvements in near future. The fronthaul rate for Brazil/China is now down to very low USD 8 pmt. The Aussie miners and the operators have been active this week on the west Australia to China route, however the freight rates kept dropping and is down to very low USD 4 pmt level. FFA market for next year keep sliding and is now at such a level where 1-year period barely will cover the operating cost of a vessel. Hence, there is not many owners who are willing to fix out their tonnage for period, and period activity is therefore very limited. So the period deals which is being concluded is mainly concluded on index linked rate. Panamax Despite fair activity, there is no immediate sign of any recovery in any corner of the Panamax market. Rounds in the Atlantic are only paying in the 3-4k range - less on voyage. USG fronthaul still under pressure, and giving owners around poor 8.5-9k from Skaw/Gib range. "Fixed and failed" is a common expression these days. In the Eastern hemisphere rates are still sliding. Nopac and Aussie rounds at 4k + 140 APS, Indo rounds closer to 3k. Period activity reduced to a minimum. However, as some owners now are willing to sell off the next 4-7 months, some short period fixtures has been concluded on nice LME in the mid 5k’s. The forward curve for next year is not moving much around weak 5750/day. Handy The Handy and Supra market suffered further decrease in rates this week. The falling bunker and commodity prices puts pressure on the whole logistics chain and rates continue to soften. There are some positiveness on expectations for the upcoming grain season in Aussie, but this is yet to be materialized. Short Pac rounds are now paying around USD 4k. In the Atlantic, we see the same tendency with less cargo out of the better paying USG market which now facing low/mid 7k for trip Cont. The period market is not very active either, we see a big gap between bid/ask. Takers there at low 5k for short period while owners holding out for the 6k and might consider a discounted first period for the bigger Supras.

Monsanto sees higher corn prices as boost to business

Monsanto Co. expects corn prices to rise next year, which will help the seeds and agrochemical company reach its earnings forecast. But they added that the majority of its growth will come from new products and expanding its reach to new markets.

Potash miners facing another round of tough negotiations with big buyers in China and India

Potash miners, facing another round of tough negotiations with big buyers in China and India, are looking to support sinking profits by boosting sales of higher-margin specialty products. The pink fertilizer's price has fallen sharply this year, under pressure from bloated capacity, soft grain prices and weak currencies in Brazil and India, spurring Potash Corp of Saskatchewan, Mosaic Co and Belaruskali to slice output.

Brazil may raise import tariffs to help steelmakers

The Brazilian government is considering raising import tariffs on steel as part of measures to help the country's struggling steelmakers, Finance Minister Joaquim Levy said on Wednesday. Speaking after a congressional hearing in Brasilia, Levy said the government has not yet decided on the tariff hike, but was studying several ways to protect the industry just as other countries are doing.

Senators press U.S. administration on China aluminum extrusion duties

Twelve U.S. senators urged the Obama administration to enforce duties on Chinese aluminum extrusions, the latest call for government action as the U.S. industry escalated calls to curb subsidized imports of the metal. In a letter to Department of Commerce Secretary Penny Pritzker and Customs and Border Patrol Commissioner Gil Kerlikowske, the senators accused Chinese extruders of evading antidumping and countervailing duties.