Monday, July 20, 2020

"Iron Ore Under Pressure as China Port Stockpiles Grow"

June 26, 2020: "With The Baltic Dry Index Up For Twenty Straight Sessions Will The Gamblers Who Wagered On Tankers Bet On Bulkers?":
Not me.
A third-derivative trade on the demand for steel in China is just a bit too esoteric.
Simpler to lose your money in Shanghai rebar futures, less thinking required.
[rebar is rolling over after a nice little run-up] 
Well there you go,
And here we go to MarineLink, July 20:
Iron ore futures slipped on Monday on rising port inventory of the steelmaking ingredient in China, though optimism over prospects of strong domestic steel demand for the rest of the year kept losses in check.

The Dalian Commodity Exchange's most-traded September iron ore contract closed down 0.3% at 817 yuan ($116.91) a tonne, stretching losses into a third consecutive session.
Iron ore's August contract on the Singapore Exchange dropped 0.7% to $106.31 a tonne in afternoon trade, extending losses into a fourth session.

China's imported iron ore inventory stocked at ports rose for a fourth straight week to 112 million tonnes, as of July 17, the highest since mid-May, data from SteelHome consultancy showed.
Rising port stockpiles and signs that iron ore demand from steel mills were levelling off also kept iron ore's spot prices under pressure.

Benchmark 62% fines stood at $111 a tonne on Friday, SteelHome data showed, retreating from a near one-year high hit on July 15.

Dalian iron ore, however, remains on track for a fifth monthly gain in a row, supported by strong steel prices and China's stimulus program to prop up its economy....

I'm hearing good things about mung beans. No futures, cash market but the base ingredient for a Chinese alternative to Beyond Meat.
Maybe take an option on some bean storage facilities for next season.
Shades of Thales and the olive presses!