Freight rates in the Azov region continue to decline, but the rate of decline in the market slowed down. Unfortunately for Shipowners, this is more caused by the approximation of the rates to the levels of profitability of the flight, rather than serious changes in the conjuncture of the grain market. According to Traders, the price of domestic grain fell slightly last week, but at the same time and the dollar also fell. These two factors compensated each other, and the overall situation has not changed: still very much affordable (cheap) spot tonnage.
Expectations that after the Turkish holidays rates will go up dramatically, did not materialize. And in the Azov region and the Black sea market continues to fall. Rates from Rostov to the Marmara with wheat is estimated to average $ 17 per ton. For comparison, in 2018, on the same shoulder rates hovered around 28 dollars.
To support domestic prices by the Turkish grain Agency has announced a new tender for the purchase of 250 000 tonnes of soft milling wheat with delivery in mid-September. Most likely, market participants will await the outcome of these trades to identify trends in the movement of grain prices. The tender results should be known on 3 September that could be a starting point for the resumption of activity in the region.
Freight market in the Caspian sea agreed with the General southern trend in the decline. In addition to the traditional regional difficulties caused by the sanctions during the reporting week declined sharply, the supply of goods from the Caspian sea ports (Makhachkala, and Aktau). Nezavisimaia the harvesting campaign in the Northern regions of the Volga region adds to the market positive. In Astrakhan is already beginning to accumulate outdoor spot tonnage.