Estimates of world grain trade continue to increase in new season


Estimates of world grain trade increase. In its July report International Grains Council raised the estimate of world grain trade to 324 MMT in the 2016/17 season compared with 319 MMT of the previous projection. As a reminder, in season 2015/16 world grain trade reached a record high of 341 MMT.

Over the past 4 years world grain production at 2 bln tons and growing demand for foodstuffs caused increase in word trade to more than 300 MMT. This provided significant support to sectors of medium and small tonnage of Panamax and Supramax type, but this has also increased volatility in the dry bulk market due to seasonal fluctuation of demand for food. It is forecasted that grain impact on dry bulk market will increase, and growing grain trade may support the world market of transportation.





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