Baltic Dry Index weakens further

Baltic Dry Index, an indicator for worldwide shipping of commodities, dropped further to close at 2985 on Friday, July 10. Meanwhile, thermal coal spot prices in Newcastle, a benchmark for Asian market, closed lower by 2% last week.

Baltic Dry Index (BDI) lost 18% in one week from 3672 in July 3rd, 2009. BDI lost 30% from June 3rd, a clear sign of weaknesses in commodities market. CPO prices in Malaysia Derivatives Exchange closed at RM2010 per ton last Friday.

Bids for October delivery this morning reached as low as RM1895 per ton, while the benchmark September delivery at RM1990 per ton.

Meanwhile, thermal coal spot prices in Newcastle port, Australia, declined 2% for the week ended July 10 to US$71.63 per ton, while in Richard Bay (South Africa) and ARA (Europe) gained slightly to US$60.69 and US$66.01 per ton respectively.

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