Baltic Dry Index (Ocean Freight)

[errolanderson]

Tumbling . . . . Baltic Dry down nearly 4% today alone and now at lows not seen since April 2016. This reflects the cost of shipping goods around the world. Heavy commodity price pressure globally right now.

[errolanderson]

Sell-off being led by king of commodities ‘crude oil’ . . . . WTI crude has pulled back nearly $12 per barrel since assassination of Iran general.

Shippers were optimistic that the Phase One Trade Deal signing would buoy ocean freight values. But a quiet China and now coronavirus have ocean freight rates tanking.

Monday stock markets are apt to come under further pressure as even the massive liquidity push by the Fed may be getting long-in-the-tooth. Just when I thought I’ve seen everything in markets I’m my career, I haven’t.

Markets ahead may be written up in the history books . . . .

[bucket]

China buys Australian wheat, catches trade off guard.....

[bucket]

China buys grain from Australia ....a country that is currently importing wheat from Canada....Or is it Australian wheat from Canada????


Its sort of like the longer route the canola is taking....


And people ask why do we need sales reporting in Canada????

[bucket]

China was in last year to Canada to buy a shitload of wheat that hardly made news after the fact....


China bought 1.5 million tonnes of wheat from Canada from August 2018 through April 2019, nearly double the pace of a year earlier and the most since 2004-05, according to Canadian Grain Commission data

[malleefarmer]

https://www.agricensus.com/Article/China-buys-Australian-wheat-catches-trade-off-guard-10279.html https://www.agricensus.com/Article/China-buys-Australian-wheat-catches-trade-off-guard-10279.html

[ajl]

Trust the chicoms to buy wheat from the highest price supplier in the world. They do that a lot. I'm sure they could have gotten similar product from canuckistan at 2/3 the price. The chicoms bought into the oil sands at their 2013 high as well so savy investors they are not. Does look like the chicoms are not planning to make good on their commitments under phase 1 and thus cut their own threats. Might as well prepare the tariffs Mr. President.

[errolanderson]

Massive copper selloff in-progress . . . . Copper prices plunging 10% in the past week, largest weekly plunge in decades. Copper or Dr. Copper is viewed as the bellweather indicator of global economic health. China consumes 50% of global supplies.

This has contributed to the swift drop in ocean freight. You don't want to own a container ship these days.

This is a huge warning to equity markets (IMO) . . . .

[bucket]

I will believe you when fertilizer starts to come down in price along with fuel and all other inputs....

Why isn't everything suffering like the grain markets. ...oh yeah that's right .....mosaic and nutrien had a collusion conference call and shuttered two potash mines for the foreseeable future....colonsay and vanscoy. ....

Inputs are not dropping....why not?

If ocean freight is down then there is no logical reason to increase prices on inputs.....grains are going down even though with the lower freight rates a importer could buy more??????

[errolanderson]

Massive copper selloff in-progress . . . . Copper prices plunging 10% in the past week, largest weekly plunge in decades. Copper or Dr. Copper is viewed as the bellweather indicator of global economic health. China consumes 50% of global supplies.

This has contributed to the swift drop in ocean freight. You don't want to own a container ship these days.

This is a huge warning to equity markets (IMO) . . . .

This drop in global commodities also warns of a possible sudden decline in precious metal prices, barring geo-political tensions (ie: gold and silver) on deflationary pressures. Realize this is contrary to all the internet chatter out there. It's a crazy economic world out there . . . .

[bucket]

So my micro nutrient package with copper will be cheaper?

[ajl]

So my micro nutrient package with copper will be cheaper?

NTR stock has taken quite the beating the past couple of trading sessions so all is not well in the fertilizer market.

[errolanderson]

Heavy selling pressure in Asia tonite. Shanghai down nearly 3 percent, Nikkei index off nearly 2 percent.

North American markets setting up for heavy selling tomorrow in both commodities and equities.

[bucket]

Heavy selling pressure in Asia tonite. Shanghai down nearly 3 percent, Nikkei index off nearly 2 percent.

North American markets setting up for heavy selling tomorrow in both commodities and equities.

So the question remains...are inputs to the farm going down like the commodities produced on them?

[biglentil]

This drop in global commodities also warns of a possible sudden decline in precious metal prices, barring geo-political tensions (ie: gold and silver) on deflationary pressures. Realize this is contrary to all the internet chatter out there. It's a crazy economic world out there . . . .

Comparing oil and copper (consumables) to gold is like comparing apples to oranges. Gold does great in a deflationary environment and in an inflationary environment. It doesn't do well when everything is stable and peachy.