Grain-Carrier Rates Rising as Crop Cargoes Near Record: Freight
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Near-record agricultural exports are diminishing the capacity glut in grain carriers, boosting rates for Safe Bulkers Inc. and other owners to the highest in almost two years.
Global shipments of wheat, corn and soybeans will rise 11 percent to 365.4 million metric tons in the 2013-14 crop year, the U.S. Department of Agriculture predicts. Panamaxes, each hauling 75,000 tons of cargo, will earn an average of $9,500 in the first quarter, 32 percent more than now, according to the median of six analyst estimates compiled by Bloomberg. Investors may profit because the forecast is 14 percent higher than swaps traders use to bet on future freight costs.