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Shipping Stocks Power Higher As Grain Prices Rises

Shipping stocks like DryShips Inc. (NASDAQ:DRYS), Genco Shipping & Trading Limited (NYSE:GNK) and Excel Maritime Carriers Ltd (NYSE:EXM) have soared higher ever since the massive spike on grain prices, specifically wheat.  Just yesteday, Russia banned all exports of grains because of their massive drought.  This huge price jump in grains has helped and will help the shipping companies command a higher daily rate.  This in turn has helped their stock prices soar. Even as the markets have dropped sharply today, stocks like DryShips is flat.  Note the daily chart below.  In the short run, these stocks are very extended and if the price of grain pulls back, so will they.

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com