Dear Charlie,
I read this... and wow what a difference a year makes!
"Copyright 2008 Lloyd's List International
All Rights Reserved
Lloyd's List
September 18, 2008 Thursday
Markets; Pg. 14
410 words
Handymaxes to cash in on Europe's wheat boom;
Ship class set to be vessel of choice to export bumper crop of 16m tonnes
HANDYMAX vessels are set to benefit from a bumper European wheat crop, according to Glencore Grain managing director Keith Davies.
Mr Davies said the northern European wheat harvest was "nearly finished", with France producing more than 38m tonnes this year.
"We should see pretty significant exports from the EU this year, and that the bulk of that could well come from France and, to a lesser extent, Germany and the United Kingdom," Mr Davies said.
"Ten million tonnes is normally exported from Europe ndash; this year it will be sixteen million and in terms of trade flows, we'll see more significant quantities of grain going further afield, to places such as Pakistan."
He said much of this would be transported on handymax vessels rather than the smaller handysize class.
However, there would still be work for handysize ships to transport grain within the Mediterranean and elsewhere
Bunkers will also play a role in vessel selection, with a drop in prices after the recent crude oil price correction.
This could change the economics of vessels choice, Mr Davies said, speaking at a dry bulk conference in London last week.
Recent statistics highlight a stronger year for global grain production, forecast at 1.75bn tonnes in 2008-2009.
Europe's wheat crop is expected to be 145m tonnes, up 25m tonnes on last year, while Russia's crop is up by 10m tonnes to 55m tonnes. Major exporting countries of Australia and Canada will have smaller crops, at 24m tonnes and 25m tonnes respectively.
Australia's exports are expected to be around 14m-15m tonnes.
Last year's smaller European crop meant the region had to import maize from South America, where non-genetically-modified crops are produced. Mr Davies said this trade would not be seen this year.
The transport of grain and other agricultural bulk products comprised around 11% of 1.02bn tonnes of minor bulk seaborne trade in 2007.
Rising ethanol production in the US has yet to dent American corn exports, which are forecast to rise to a record 46.9m tonnes this crop season.
Glencore Grain believes that world grain use for ethanol will rise to 117m tonnes in 2008-2009, up from 90m tonnes last year.
But the US, which mainly uses corn to produce ethanol for biodiesel, has increased its crop plantings to compensate for increased domestic consumption.
World corn production is forecast to rise to 783m tonnes, according the US Department of Agriculture, while the world's wheat crop is set to reach 676.3m tonnes."
http://www.world-grain.com/news/newsfinder.asp?Action=UserDisplayFullDocument&orgI d=586&docId=l:853506640&topicId=14429&start=8&topi cs=single
I read this... and wow what a difference a year makes!
"Copyright 2008 Lloyd's List International
All Rights Reserved
Lloyd's List
September 18, 2008 Thursday
Markets; Pg. 14
410 words
Handymaxes to cash in on Europe's wheat boom;
Ship class set to be vessel of choice to export bumper crop of 16m tonnes
HANDYMAX vessels are set to benefit from a bumper European wheat crop, according to Glencore Grain managing director Keith Davies.
Mr Davies said the northern European wheat harvest was "nearly finished", with France producing more than 38m tonnes this year.
"We should see pretty significant exports from the EU this year, and that the bulk of that could well come from France and, to a lesser extent, Germany and the United Kingdom," Mr Davies said.
"Ten million tonnes is normally exported from Europe ndash; this year it will be sixteen million and in terms of trade flows, we'll see more significant quantities of grain going further afield, to places such as Pakistan."
He said much of this would be transported on handymax vessels rather than the smaller handysize class.
However, there would still be work for handysize ships to transport grain within the Mediterranean and elsewhere
Bunkers will also play a role in vessel selection, with a drop in prices after the recent crude oil price correction.
This could change the economics of vessels choice, Mr Davies said, speaking at a dry bulk conference in London last week.
Recent statistics highlight a stronger year for global grain production, forecast at 1.75bn tonnes in 2008-2009.
Europe's wheat crop is expected to be 145m tonnes, up 25m tonnes on last year, while Russia's crop is up by 10m tonnes to 55m tonnes. Major exporting countries of Australia and Canada will have smaller crops, at 24m tonnes and 25m tonnes respectively.
Australia's exports are expected to be around 14m-15m tonnes.
Last year's smaller European crop meant the region had to import maize from South America, where non-genetically-modified crops are produced. Mr Davies said this trade would not be seen this year.
The transport of grain and other agricultural bulk products comprised around 11% of 1.02bn tonnes of minor bulk seaborne trade in 2007.
Rising ethanol production in the US has yet to dent American corn exports, which are forecast to rise to a record 46.9m tonnes this crop season.
Glencore Grain believes that world grain use for ethanol will rise to 117m tonnes in 2008-2009, up from 90m tonnes last year.
But the US, which mainly uses corn to produce ethanol for biodiesel, has increased its crop plantings to compensate for increased domestic consumption.
World corn production is forecast to rise to 783m tonnes, according the US Department of Agriculture, while the world's wheat crop is set to reach 676.3m tonnes."
http://www.world-grain.com/news/newsfinder.asp?Action=UserDisplayFullDocument&orgI d=586&docId=l:853506640&topicId=14429&start=8&topi cs=single
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