Baltic index rises, trend seen positive for now

* Manufacturing data boosts sentiment

* Capesize market stays firm

By Jonathan Saul

LONDON, Sept 1 (Reuters) - The Baltic Exchange's main sea freight index .BADI, which tracks rates to ship dry commodities, rose on Wednesday as active buying of freight derivatives contracts boosted sentiment.

But brokers said firmer iron ore physical buying was needed to sustain gains.

The index, which gauges the cost of shipping commodities including iron ore, cement, grain, coal and fertiliser, rose 1.03 percent, or 28 points, to 2,741 points.

Brokers said firmer manufacturing data in China and the United States drove the buying of freight derivatives contracts. [ID:nSGE68002V]

"The futures market is telling us that we will have a quite strong move up in the capesize spot index at the end of this week and next week," said Tor Svelland, head of commodities at Pareto Securities.