rhino127

Keep Your Eye on the Baltic Dry Index

BDI reflects coal, Iron Ore, and grain and feed. Dry bulk freight rates are just too high now and basis current wheat prices for example, the freight component on CIF wheat to India from the US gulf would be about 25%. When it should normally be 15% max. Freight needs to come down about 25% equating to a BDI at 6300 to keep things in balance. Wonder how many hedge funds have invested in freight derivatives linking to the BDI? Maybe am too old fashion...