USDA Crop Report Provides Few Surprises (Source: CME)
Federal crop forecasters didn't deliver any surprises, making only slight tweaks in their outlook for U.S. grain supplies. The U.S. Department of Agriculture's monthly crop report has whipsawed commodity markets much of the year as the agency made deep cuts in the projected size of corn inventories and the U.S. crop. So while supplies of the grain remain historically tight, and the USDA left its price forecast for corn unchanged, the report had limited effect on grain markets. "It was boring for a change," wrote analysts at INTL FCStone in a morning note to clients. Forecasters lowered the outlook for the U.S. corn crop, cutting the projected size by 1% to 12.31 billion bushels. Yet they also reduced the outlook for corn demand, saying chicken farmers are buying less feed as they cut the size of their flocks in the face of a supply glut. The end result was the USDA made a 2.7% cut in projected end-of-season inventories to 843 million bushels.
U.S. farmers are expected to harvest the fourth-largest U.S. corn crop on record, yet the size is driven by increased plantings rather than more productive fields. The USDA expects farmers on average to produce 146.7 bushels per acre, the lowest average yield since 2003. Grains traders mostly looked past the report, as equity and commodity markets broadly sold off on growing concerns about the European debt crisis spreading to Italy. Corn futures for December delivery at the Chicago Board of Trade were down 11 1/2 cents, or 1.7%, to $6.49 per bushel, while soybean futures for January delivery were down 1.5% to $11.87 1/2. "I don't think there's enough on either the bull or the bear side to sink your teeth into it," Chad Henderson, analyst with Prime Ag Consultants, said of the USDA report. The USDA didn't increase its prediction for U.S. corn exports, with the figure remaining at 1.6 billion bushels. But forecasters did raise the outlook for Chinese imports.
The USDA now expects China to import a total of 3 million metric tons of corn in the current marketing year, which runs from September to August. That is a sharp increase from the 2 million tons the agency predicted just a month ago, and an even bigger leap from the 980,000 tons China imported in the previous marketing year. Still, many analysts think the number is too conservative. A majority of Chinese corn imports have come from the U.S. In Wednesday's report, the USDA also trimmed its production and yield forecasts for wheat and soybeans. Excessive rains brought sharp delays for wheat farmers in northern Plains states. The agency did an additional round of surveys in late October, with the USDA again lowering its production forecast. U.S. wheat farmers are now expected to produce 1.999 billion bushels of wheat, down from the October forecast of 2.008 billion bushels. And the new yield estimate is 43.7 bushels per acre, down from 43.9 bushels per acre.
Meanwhile, the USDA lowered its forecast for U.S. soybean production slightly to 3.046 billion bushels, from 3.06 billion bushels. But the USDA also lowered projected soybean exports, raising its forecast for end-of-season soybean inventors to 195 million bushels.
Some MF Customers See Frozen Funds Thaw (Source: CME)
CME Group Inc. said that some former MF Global Holdings Ltd. clients may have to wait until the end of the week to access accounts frozen after the broker-dealer's bankruptcy, though some funds have finally been thawed. The Chicago-based exchange operator and rivals began early lifting a hold on futures-trading margin parked by customers at MF Global, after arranging a mass exodus of brokers, hedge funds and individual investors' trading business out of the failed firm last Friday. Customer accounts that dealt in options must wait longer as the exchanges, clearinghouses and regulators ensure that all former MF Global clients are treated fairly and that some funds remain under control of the trustee overseeing the company's liquidation. CME had aimed to complete the work by the close of business Tuesday, but said calculating the value of the more complex options positions is taking longer than expected.
The "massive undertaking" of shifting more than 15,000 customer accounts and the complexity of managing the transfer to other clearing firms has meant that "the validation of each account's collateral balance is taking longer than originally anticipated," CME officials said in a statement. Open trades were moved in the transfer, along with a portion of the collateral put up by customers to secure their trades. An estimated $600 million shortfall in the level of customer assets that MF Global was supposed to have on deposit has hindered the process of reuniting clients with their funds, which under U.S. law are to be kept sealed off from MF Global's own money. Some brokers who routed their client's business through MF Global for the purposes of carrying out trades on markets like the Chicago Mercantile Exchange said that the money had appeared in their account overnight, and was available to support trades.
David Rosen, who brokers energy contracts on the floor of the New York Mercantile Exchange, said his MF Global account had finally been transferred to a new clearing firm, FC Stone, when he arrived for work Wednesday morning. Only a small amount of margin had transferred, however, and he had to deposit additional funds so he could resume trading. "I gave them a new check so I had money in there I could use as margin and collateral," Rosen said. Although his positions and some margin were transferred, more than $150,000 in cash remains tied up with his old clearing firm, he said. Clients of MF Global who had cash or excess margin on deposit with MF Global--not backing up any standing trades--most likely will have to file claims to get their money back from the trustee supervising the firm's unwinding.
Jack Scoville of Chicago-based Price Futures Group said he saw funds appear in his former MF Global account early Wednesday, but said getting only some of the money was little comfort to his customers. "Regardless, we're still not whole," he said.
Noble Group Posts Surprise Loss; CEO Resigns (Source: CME)
Commodities supply chain manager Noble Group Ltd. announced the resignation of its chief executive, just hours after posting a surprise swing to a $17.5 million net loss in the third quarter from a net profit a year earlier on the back of volatile market conditions and mark-to-market losses. CEO Ricardo Leiman will remain as an advisor to the group after resigning for personal reasons, Noble said in a statement separate from its earlier results announcement. Chairman Richard Elman has been appointed acting CEO, and the Singapore-listed company said it will make an announcement on Leiman's replacement shortly. "We are taking this opportunity...to realign our goals and strategies to adapt to the many challenges that exist in the prevailing market conditions," Elman said in the statement announcing Leiman's departure.
Noble also said late Wednesday it received approval from the Singapore Exchange for the planned Singapore spinoff of its agricultural business, adding the listing could comprise either a primary issuance of shares by the unit, or a secondary sale of shares by the parent, or both. The group said it received encouraging investor interest, but added no final decision has been made with regard to the details of the proposed listing. The net loss for the three months ended Sept. 30 compared with a $157.2 million net profit a year earlier, Noble Group said in the results statement filed to the Singapore Exchange. "It goes without saying that we are very unhappy with this performance even if it does just cover a very short period," Elman said in the results statement. He said while "'things happen' which are out of our control", the group "remains very healthy and strong."
Revenue for the period was $20.9 billion, up 40% from $14.9 billion in the third quarter of 2010. Noble's businesses include agriculture, energy, metals, minerals and ore. Noble said its net loss was "primarily driven by the very volatile market conditions and uncertain macro environment" and that "much of the reduction in profitability was caused by the impact of unrealized mark-to-market losses." Operating income from supply chain for Noble's agriculture unit fell 70% to $68.3 million while the energy unit rose 8% to $154.7 million. Operating income from supply chain for the metals, minerals and ores unit fell 74% to $19.4 million. Noble last month said it had already filed an application in relation to the possible listing of its agriculture business. The group's chief financial officer, Robert van der Zalm, said the group would hold a majority stake in the agricultural unit if the IPO goes ahead.
People familiar with the transaction this week said Noble plans to raise "north of US$500 million" through the listing and that it has appointed J.P. Morgan Chase & Co. (JPM) sole global co-ordinator. J.P. Morgan is also a bookrunner along with Citigroup Inc. (C) and Goldman Sachs Group Inc. (GS). The people said Noble plans to list on the Singapore Exchange in the first quarter of next year.
South Australia Grain Harvest Gathering Pace (Source: CME)
A harvest of wheat and other winter grains is gathering pace in South Australia, aided by ideal conditions, Calgary-based Viterra Inc.'s (VT.T) local unit said. However, its official forecast suggests the new wheat crop will fall well short of last year's production. Receivals into Viterra's upcountry grain storage network more than quadrupled in the week ended Nov. 6 to reach a total of 243,125 metric tons, a weekly harvest report showed. "The overall quality profile has improved with the most recent deliveries" but expected rainfall could delay harvest in the coming days, Viterra said. The company dominates upcountry grain storage and export terminal operations in South Australia. Most of the grain produced in the state is available for export. The government's Australian Bureau of Agricultural and Resource Economics and Sciences estimated South Australia wheat production at 4.60 million tons and barley output at 2.40 million tons in the 2011-12 crop year ending March 31.
The state Department of Primary Industry and Resources estimated wheat output at 4.15 million tons, barely changed from a September estimate but down from a record 6.06 million tons last year. New-crop barley output was estimated at 2.34 million tons. The department said rainfall in the growing season from April through October was below average across most of the state, despite which crop yield potential is average to above average.
Russian Port Capacity For Grain At 25M Tons (Source: CME)
Russian port capacity for grain has increased to around 25 million metric tons due to the development and upgrading of infrastructure, the U.S. Department of Agriculture's Moscow attache said, but warned that transportation and logistical problems continue to be a major issue in the country. Russian grain exports are able to exceed this estimated yearly port capacity through direct loading of railway wagons into ships, the USDA said, as well as using ports from other countries. However, it warned that competition with Ukrainian and Kazakh grain traders in the deep water ports of Ukraine and the ports of Baltic countries is very high. Another constraint on Russian exports is the speed and capacity of grain intake, the USDA said, as poor management of railway logistics, high cost of transportation from Siberian regions and competition from Kazakhstan for grain cars results in bottlenecks.
Bad weather can also delay ship loading, the USDA said, citing wind in Rostov which can reduce the river draft and halt exports for a number of days.
Corn (Source: CME)
US corn futures ended lower as outside market pressure overwhelmed what many traders saw as a friendly USDA report. Sharply lower equities and stronger US dollar pressured grains generally. Corn briefly surged higher at midday on end-user buying, traders say, before retreating. USDA's cut to projected crop size seen as supportive, as Western Milling analyst Joel Karlin notes a cut in the November report is usually followed by further cuts in January. "I think corn is headed to $7 again," he says. But others think USDA was neutral or bearish, as supply cuts were offset by weaker demand. CBOT Dec corn retreats from intraday high of $6.65, ends down 4 1/2c to $6.56 per bushel.
Wheat (Source: CME)
US wheat futures closed mostly down as outside macro concerns prompted a broad-based selloff. Renewed worries about the euro-zone debt crisis sent equities sharply lower and boosted the dollar, which is negative for commodities. Meanwhile, Wednesday's USDA supply/demand report was seen as mostly neutral for wheat prices as the government cut projected stockpiles slightly. Still, weak export demand a key negative factor in the market and worries about crops in the southern Plains and Ukraine may limit the downside. KCBT December wheat led the way lower Wednesday, sliding 3.5% to $7.13/bushel. CBOT December fell 14c to $6.43 but MGEX December rose 4 1/2c to $8.76 on a lack of farmer sales; deferred contracts ended lower.
Rice (Source: CME)
US rice futures tumbled to a 4-month low on outside market pressure, technical selling and a government increase in US supply projections. The government upped its yield projection and increased its 2011-12 ending-stocks projection by 3%. Meanwhile, euro worries sent the dollar higher and prompted a selloff across equities and commodities markets. Today's new low comes as rice futures have been falling for two weeks, with weak US export demand and trend-based selling adding to the pressure. CBOT November rice slid 2.7% to $15.28 1/2.
Corn, soy tick up ahead of USDA report; wheat dips
SINGAPORE, Nov 9 (Reuters) - Chicago wheat fell 0.2 percent , as the market came under pressure from plentiful global supplies, including expectations of a near-record Australian crop, which is likely to increase competition for U.S. suppliers.
"The sense that we are getting is that the soy market has been cautious because of slow U.S. exports, but today we are seeing a little bounce ahead of the report," said Abah Ofon, an analyst with Standard Chartered Bank in Singapore.
Thailand's main rice crop seen down 2.7 pct-attache
Nov 8 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Thailand: "MY2011/12 main-crop production is revised down to 21.6 million tonnes of paddy, down 2.7 percent from the previous year, due to higher-than-expected production loss of 1-2 million tonnes from extensive flooding.
However, anticipated bumper off-season crop will likely offset the flooding damage. Consequently, total MY2011/12 rice production is expected to remain higher than the previous year by 1.3 percent. Meanwhile, the Paddy Pledging Program will likely absorb approximately half of the main-crop production due to attractive intervention prices."
Argentine corn harvest seen reaching record
BUENOS AIRES, Nov 8 (Reuters) - Argentina's corn production should reach a record 28 million tonnes this season if weather conditions are favorable, the head of the Maizar industry group said on Tuesday.
The South American country, the world's No. 2 corn supplier after the United States, produced 23 million tonnes of the grain last season, according to Agriculture Ministry data. That also marked a record.
France raises maize crop to over 15 mln tonnes
PARIS, Nov 8 (Reuters) - France's farm ministry on Tuesday raised again its estimate of this year's maize harvest after summer rain generated higher yields in the European Union's top grain producer.
French maize grain output was now expected to reach 15.2 million tonnes in 2011, up from 14.9 million tonnes seen a month ago and 10.1 percent higher than an estimated 13.8 million tonnes harvested in 2010, the ministry said.
Ukraine boosts grain exports in Nov 1-7
KIEV, Nov 8 (Reuters) - Ukraine almost doubled its grain exports to about 472,000 tonnes in the first seven days of November against the same period in October after cancelling export duties, analyst ProAgro said on Tuesday.
The consultancy said the volume had included about 318,000 tonnes of maize.
Big rains in west US Midwest, eastern Plains slow harvest
CHICAGO, Nov 8 (Reuters) - Heavy rainfall early this week in the western U.S. Midwest and eastern U.S. Plains will slow the final harvest of corn and soy, while giving a boost to the 2012 hard red winter wheat crop, an agricultural meteorologist said Tuesday.
"A storm system is moving across the Plains and western Midwest now and will be into the northern Midwest tomorrow," projected Don Keeney, meteorologist for MDA EarthSat Weather.
Ukraine targets record '12 crop despite drought
KIEV, Nov 8 (Reuters) - Ukraine is targeting a record grain harvest of 54 million tonnes in 2012 against the crop of 52-53 million in 2011, despite drought during the winter sowing, Farm Minister Mykola Prysyazhnyuk said on Tuesday.
"The government plans to increase agriculture output by 5.7 percent (in 2012) and the grain harvest should raise to 54 million tonnes," the ministry quoted Prysyazhnyuk as saying.
Grains Slump as Demand Slowdown Eases Strain on Tightening Global Supplies (Source: Bloomberg)
Corn futures fell from a six-week high, and wheat and soybeans slid on speculation that U.S. grain inventories will be sufficient as Europe’s faltering economy erodes demand. U.S. corn stockpiles before next year’s harvest may be 843 million bushels, or 5.4 percent more than analysts in a Bloomberg News survey expected, the Department of Agriculture said today. The agency boosted its forecast for domestic soybean supplies and projected domestic and global wheat supplies that were bigger than analysts forecast. Crop prices fell in tandem with global equities and commodities on heightening concern that European’s debt crisis is spreading to Italy. The USDA said demand for corn used for livestock feed will be 2.1 percent less than forecast at 4.6 billion bushels.
World Wheat-Surplus Estimate Raised by U.S. Agency on Eastern Europe Gain (Source: Bloomberg)
World wheat inventories will be 0.1 percent larger than forecast a month ago as producers in the former Soviet Union and Eastern Europe boost output, while U.S. supplies may decline, a government report showed. Global stockpiles will total 202.6 million metric tons by the end of May, up from 202.37 million forecast in October, the U.S. Department of Agriculture said today. The average estimate of 14 analysts in a Bloomberg survey was 202 million. The USDA said domestic supplies will be 828 million bushels, down from 837 million estimated in October. Analysts expected 819 million. The report was “fairly neutral all the way around,” Jason Britt, the president of brokerage Central States Commodities Inc. in Kansas City, Missouri, said in a telephone interview. Smaller domestic inventories were “a little bit friendly,” while prices still came under pressure because of rising world output and global economic concerns, he said.
Australia bets on wheat quality, freight to grab global sales
SYDNEY, Nov 9 (Reuters) - Australian wheat exporters are counting on lower shipping costs and higher quality grain from the advancing harvest to give them the upper hand in South East Asian markets, allowing them to fend off aggressive competition from Black Sea suppliers.
But the threat of wet weather during what should be a bumper 2011/12 crop remains a risk that could cut the protein content and downgrade quality of exports from the world's fourth-largest shipper of the grain.
Italy 2011 sugar output down 22 pct, content up
MILAN, Nov 8 (Reuters) - Italy's output of sugar made from local beets fell below earlier forecasts to 341,000 tonnes in 2011 after a sharper-than-expected drop in sown areas, but sugar content rose from 2010, a senior official at Italian beet growers' body ANB said.
Sugar output fell about 22 percent compared with some 438,000 tonnes produced from local sugar beet last year, because sown areas dropped to 45,000 hectares in 2011 from 62,266 ha in 2010, hit by bad weather and by competition from higher priced grains and oil seeds, ANB's senior technical expert, Emilio Pattaro, said.
ICE sugar dips, coffee steady, eyes on Italy
LONDON, Nov 9 (Reuters) - ICE sugar futures eased, weighed by a firmer dollar, and coffee and cocoa futures were little changed in early trading on Wednesday, as markets focused on political uncertainty in Italy after Prime Minister Silvio Berlusconi's pledge to resign.
Raw sugar futures dipped, pressured by the strengthening dollar, with dealers focused on planned budget reforms in Italy after Berlusconi's pledge to resign.
India's Oct natural rubber imports plunge 65 pct; output up
Nov 9 (Reuters) - India's October natural rubber imports plunged 65 percent to 6,862 tonnes, while production rose 8.4 percent to 89,300 tonnes, the state-run Rubber Board said in a statement on Wednesday.
Consumption during the month stood at 76,000 tonnes compared to 81,180 tonnes a year ago, it said.
Brazil sugar exports seen weak through April
SAO PAULO, Nov 8 (Reuters) - Sugar exports from Brazil's center-south will likely be notably low during the interharvest in the coming months, as mills hold stocks for possible sales on the local market, industry sources said on Tuesday.
Shipments from November through March 2012 could be 2 million tonnes lower than those seen a year earlier, a drop of nearly 30 percent, according to expectations from the sector in the world's No.1 sugar exporter.
Ivorian weather mixed, dry season seen approaching
ABIDJAN, Nov 8 (Reuters) - Cocoa farmers in top grower Ivory Coast reported mixed weather last week, with rains appearing to ease off in western regions but the occasional shower supporting the development of the main crop elsewhere.
Ivory Coast is heading into the dry season, which is due to start in mid-November, but growers in the western regions now say they have not had significant rain for two weeks and fear the size and quality of the crop may lag in several months.
India may decide on sugar exports on Nov. 16 or 17-min
NEW DELHI, Nov 8 (Reuters) - India could decide whether to allow more sugar exports at a meeting of a panel of ministers likely to be on Nov. 16 or 17, Food Minister K.V. Thomas said on Tuesday.
"We have worked out a scheme for exports of a certain quantity of sugar. I had a wider discussion with (Farm Minister Sharad) Pawar on sugar production. We have more or less agreed on exporting a certain quantity," Thomas said.
CHINA TOOK 2.5 MLN T OF S.AFRICAN COAL IN OCT
LONDON, Nov 8 (Reuters) - China's imports of South African coal surged in October to 2.5 million tonnes, up from 911,000 tonnes in September, a record monthly tonnage, exporters said.
China's buying largely absorbed the unexpectedly high quantity of coal moved to South Africa's Richards Bay Coal Terminal last month and compensated for the lack of Indian spot buying.
Crude Oil Trades Near Two-Day Low in New York After Euro-Area Concern Ends Rally (Source: Bloomberg)
Oil traded near a two-day low in New York as investors speculated that recent gains were exaggerated amid signs Europe’s sovereign debt crisis may cause the euro area to fracture. Prices were little changed after dropping for the first time in six days yesterday. Italian bond yields surged to euro- era records and a senior German lawmaker said Chancellor Angela Merkel’s Christian Democratic Union may adopt a motion to allow countries to exit the common currency. Crude’s 14-day relative strength index climbed to the highest since April. Brent’s premium to West Texas Intermediate oil was near the lowest level this month. “There’s a move to the sidelines from investment participants in the crude markets,” said Michael McCarthy, a chief market strategist at CMC Markets Asia Pacific Pty Ltd. in Sydney. “We’re waiting with bated breath on Europe.”
Crude oil for December delivery was at $95.63 a barrel, down 11 cents, in electronic trading on the New York Mercantile Exchange at 12:33 p.m. Sydney time. The contract yesterday fell $1.06, or 1.1 percent, to $95.74, the lowest settlement since Nov. 7. Prices are 4.6 percent higher the past year.
POLL-US crude stocks seen up on higher imports
Nov 8 (Reuters) - U.S. crude oil inventories likely rose for a third straight week due to higher imports while distillate stockpiles were seen falling, an expanded Reuters poll of analysts showed on Tuesday.
On average, crude stockpiles were forecast up 400,000 barrels for the week ended Nov. 4, the poll of 10 analysts showed. Six of the analysts called for a stock build. One expected an unchanged level from the previous week, and three projected a drawdown, citing a small drop in imports.
Exxon sees shale growth slower abroad than in U.S.
Nov 8 (Reuters) - Development of oil and gas in shale and other unconventional formations will move forward more slowly in markets other than North America, where infrastructure and a supportive regulatory framework already exist, oil executives said on Tuesday.
"I would caution that this process will likely go slower than it did in North America," Exxon Senior Vice President Mark Albers told the World Shale Gas conference in Houston.
US EIA trims global oil demand growth forecasts
WASHINGTON, Nov 8 (Reuters) - Global oil demand will grow slightly less than previously projected this year and next, the U.S. government forecast on Tuesday in a report that gave petroleum markets little new direction.
The Energy Information Administration lowered its world oil consumption growth forecast by about 50,000 barrels per day from its previous estimate. The agency also cut its projection for 2011 global oil demand growth by 150,000 bpd.
OPEC raises oil demand view, says risk to downside
LONDON/VIENNA, Nov 8 (Reuters) - Oil producer group OPEC is investing in new supplies to meet rising consumption, even as it sees the risk to the demand outlook as being on the downside because of Europe's sovereign debt crisis and a slowing global economy.
The Organization of the Petroleum Exporting Countries in its 2011 World Oil Outlook increased its estimate of supplies, saying the amount of unused oil production that the 12-member group holds in reserve in case of supply shocks would double by 2015.
IRON ORE PRICE DROP TO BOOST CHINESE IMPORTS BY SEA
LONDON, Oct 31 (Reuters) - Weaker international iron ore prices are driving high-cost Chinese domestic suppliers to cut output, which will push the top consumer and steelmaker to rely more on seaborne imports in the coming weeks, supporting the dry freight market.
International iron ore prices have dropped more than 30 percent since September, including a record 18 percent plunge last week, as lower steel prices have forced Chinese steelmakers to cut production.
VALE KEEPING IRON OUTPUT STRONG DESPITE PRICE DROP
RIO DE JANEIRO, Oct 27 (Reuters) - Brazilian mining giant Vale joined its rivals in pledging on Thursday no let up in iron ore production, even as prices slump, European buyers cancel cargoes and Chinese steelmakers clamor for price relief.
Signaling a firm belief that the nearly 30 percent slump in spot market prices this month is a temporary blip, executives of the world's biggest iron ore producer said Chinese monetary policy easing should help bolster demand from its top consumer.
TANKER INDUSTRY FEARS FOR FUTURE OVER EARNINGS ROUT
LONDON, Oct 6 (Reuters) - There is growing concern that if oil tanker earnings remain at levels below operating costs it will threaten the sustainability of the industry, officials with industry association INTERTANKO said on Thursday.
The crude tanker market continues to struggle with a supply glut which has sent average daily earnings to record lows this year.
CHINA COSCO REPORTS Q3 LOSS OF 2.07 BLN YUAN
HONG KONG, Oct 27 (Reuters) - China COSCO Holdings Ltd , the country's No.1 shipping conglomerate, made a net loss of 2.07 billion yuan ($325.81 million) in the third quarter, hit by sliding freight rates and overcapacity in the industry.
China COSCO, operator of the world's largest bulk cargo fleet and a major global container shipper, remained in the red for a third consecutive quarter in July-September, having reported a 2.25 billion yuan loss for the second quarter.
CHINA'S COSCO EYES VENTURES TO BUILD SUPERTANKERS
HONG KONG, Nov 3 (Reuters) - China's COSCO is looking at shipping joint ventures with major oil importers to build new very large crude carriers (VLCC) as part of Beijing's plan to add more supertankers to its fleet by 2015, its chairman said.
Wei Jaifu, chairman of China Ocean Shipping (Group) Co (COSCO Group), said he expects the global shipping market to recover in 2013.
GLOBAL SHIPPING DOWNTURN WORSE THAN 2008-CHINA
BOAO, China, Nov 3 (Reuters) - Global shipping is in a downturn even worse than during the 2008 financial crisis, China's transportation minister said on Thursday, with the outlook for the industry made increasingly uncertain by the European debt crisis.
The shipping industry, a bellwether of economic activity because of its role in world trade, saw freight rates plummet from mid-2008 to the end of that year.
DRY SHIP DELIVERIES TO REACH HIGHEST EVER IN 2011
LONDON, Oct 26 (Reuters) - Deliveries of new dry bulk ships are on course to reach their highest level ever this year and fleet expansion is expected to remain strong in 2012, ship broker SSY said on Wednesday.
Despite a recent rally on the larger capesize market, brokers and analysts expect vessel supply, which has outpaced commodity demand, to cap dry bulk freight rate gains in coming months with economic uncertainty adding to headwinds.
