looking for the next king of Egypt

 

We have not talked yet about Bayer/Monsanto new set up. If you’re not up to date please find a quick summary  here

in this article we can read “We are entering a new era in agriculture — one with significant challenges that demand new, sustainable solutions and technologies to enable growers to produce more with less,” Grant said (Grant being one of the bosses involved in the deal).

For French speakers, you can listen to this edito done yesterday morning in a national radio , here also stating in nutshell, in my words:

In other words, grain producers may have more headaches while trying to negotiate their terms and conditions with their seeds and fertilizers suppliers. However,they shall stop complaining, by chosing Bayer-Monsanto, they might be able to obtain a free pack of aspirin together with the painful terms and conditions set up. Great right!

If I may give an advise to Mr Grant, not sure producing MORE is the key for the years to come. Producing with guaranteed quality at the end might pleased french agri producers (and some others around the world). If they can also produce and guarantee wheat with ZERO ERGOT, they’ll be the king of Egypt ! Gasc (Egyptian government office for Agri prods importation) placed a tender this week, with the appliance of ZERO ERGOT policy and with no surprise, they got zero offer.  This is probably the best way to remain on the safe side with the ergot importation. Seriously spoken, a ship loaded with 63000mt was refused by Gasc couple of weeks ago, claiming the wheat about to be delivered was having a too high percentage of Ergot. It’s going to cost bit of money to all players involved in this mess.

On the chartering, definitely a week which we can forget and put behind us. Quiet, does not mean that nothing is happening, we got the information that a 45’000 10pct stem of rapeseeds was discussed ex Klaipeda to Ghent with 6000/8000shex on a supra in the 10/11usdpmt region. Same kind of size ex Black Sea (Kavkaz, which is a rather cheap port) we understood a 49kdwat got covered to load about 42000mt of bulk wheat with 8000sshex to Mombasa with 5000shinc there, done in the region of 19/20usdpmt. TC Equivalent on this one being something around 9000usd dely canakkale if my maths are not wrong. Still dely Canakkale with grains via black Sea to Japan Singapore range, quite few charterers being after this trade,, value for a Supra on this route is in the 9’000usd daily. From Wmed to Wafr a 55kdwt was discussed in the 8/8.5kusd per day. As a comparison, mv ‘elena Topic’ 45kdwat is said being covered dely span med redel Wafr at 8500USd daily. On the handies from Brazil to Continent, modern 38000dwt can hope to get bit more than 6’000 usd daily.

What’s going on on the index ? the bunkers ?

Today’s bdi is back at 800 with Capers gaining close to 200pts, others size are flattish not to say lackadaisical.

on the bunkers, Brent is moving up slighlty getting above 46usd/barrel

To conclude this today/week comments, I’m inviting you to read this article about Uber and wondering if losing $1.2billon on the first half of 2016 is a something normal?billion dollar baby .

Before reading it, you can wonder what’s the links with shipping ?

Well I can see at least 3 :

  1. While bankers and founds are focused on keeping investements going on in companies like UBER (if they stop, they lose everything), they have less cash available to finance new buildings. Guys, keep up focusing on Uber, thanks.
  2. We can hear pretty often that the world economy is getting « uberized » and of course, shipping industry is wondering how this uberisation can impact our business models. It’s looking like, at least today, it might be wise to wait a bit before brushing aside all the corporations and networks which are in place in the shipping environment.
  3. Being market leader does not prevent to fall (too big too fall), but we did not need to read this article attached to be aware of that.

Looking forward for the next week with full of cargoes and ships to be put all together, let’s do it the old fashion way, via your preferred broker. Pelagos team will be in time at the office, if needed they’ll order a uber driver.

Jerome

 

 

 

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