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Baltic index jumps on rising capesize rates

Nov 26 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships ferrying dry bulk commodities, rose on Tuesday, boosted by a surge in capesize rates following a positive iron ore outlook.

* The Baltic index, which tracks rates for capesize, panamax and supramax vessels, rose 75 points, or 5.6%, to 1,426 points.

* The index posted its steepest daily percentage rise since July 4.

* The capesize index jumped 237 points, or 8.7%, to 2,953.

* "The main factor contributing to the strong development is the positive sentiment in the iron ore price," said Jo Ringheim, equity research analyst at Arctic Securities.

* Average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes such as iron ore and coal, rose $1,757 to $22,272.

* Demand for high-quality iron from China, falling iron ore inventories, increasing iron ore spot activity in Brazil, high Australian exports are some of the factors supportive of the market sentiment, Ringheim added.

The supramax index rose 16 points to 783.

* The panamax index inched lower by 8 points to 1,111.

* Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, edged $65 lower to $8,923. (Reporting by Nakul Iyer in Bengaluru; Editing by Shinjini Ganguli)

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