S&P Global Commodity Insights launches global soybeans arbitrage price matrix

S&P Global Commodity Insights has launched a daily global soybeans arbitrage price matrix, to reflect the competitiveness of each major export origin delivered into China, the world's largest soybeans importer.

The price matrix reflects the replacement values and profit margin calculations, in USD, associated with the import of soybeans from the US Gulf Coast and Brazil at destination in North China.

As the world's largest importer of soybeans, China imports more than 60% of soybeans traded worldwide, or 95 million mt of soybeans on average over the last five years.

The soybeans arbitrage price matrix reflects replacement and profit margin calculations twice a day, first at 16:30 Singapore time, in line with the Market on Close timestamp of the existing SOYBEX CFR China assessment and at 17.30 Sao Paulo time in line with the Market on Close timestamp of the existing SOYBEX FOB Santos assessment.

As part of this matrix, S&P Global uses the following existing assessments:

1. SOYBEX CFR China (M1) - SYBAB00

2. Soybeans CFR China basis (M1) - SYBAA00

3. SOYBEX FOB Santos - SYBBB00

4. Soybeans FOB Santos basis - SYBBA00

5. SOYBEX FOB New Orleans - SYBBI00

6. Soybeans FOB New Orleans basis - SYBBJ00

7. Freight route PP26. Santos, Southeast Brazil to Qingdao, North China - GRSQC00

8. Freight route PP35. New Orleans, US Gulf Coast to Qingdao, North China - GRNOQ00

S&P Global has also launched the following net forwards and margin calculations

1.1. Brazil CFR China Soybeans Replacement Asia close:

Is calculated in cents/bushel at Asian close by adding the overnight SOYBEX FOB Santos basis assessment to the freight assessment PP26 Santos, Southeast Brazil to Qingdao, North China

1.2. US Gulf CFR China Soybeans Replacement Asia close:

Is calculated in cents/bushel at Asian close by adding the overnight SOYBEX FOB New Orleans basis assessment to the freight assessment PP35 New Orleans, US Gulf Coast to Qingdao, North China

1.3. Brazil CFR China Soybeans Replacement Americas close:

Is calculated in cents/bushel at Americas close by adding the overnight SOYBEX FOB Santos basis assessment to the freight assessment PP26 Santos, Southeast Brazil to Qingdao, North China

1.4. US Gulf CFR China Soybeans Replacement Americas close:

Is calculated in cents/bushel at Americas close by adding the overnight SOYBEX FOB New Orleans basis assessment to the freight assessment PP35 New Orleans, US Gulf Coast to Qingdao, North China

1.5. Quality spread with Brazil:

Reflects the quality spread of Brazilian origin soybeans versus US Gulf origin soybeans.

1.6. Normalized Brazil CFR China Soybeans Replacement Asia close:

Is calculated in USD/mt at Asian close by adding the overnight SOYBEX FOB Santos assessment to the Brazil-US quality spread and freight assessment PP26 Santos, Southeast Brazil to Qingdao, North China

1.7. Normalized US Gulf CFR China Soybeans Replacement Asia close:

Is calculated in USD/mt at Asian close by adding the overnight SOYBEX FOB New Orleans assessment to the Brazil-US quality spread and the freight assessment PP35 New Orleans, US Gulf Coast to Qingdao, North China

1.8. Normalized Brazil CFR China Soybeans Replacement Americas close:

Is calculated in USD/mt at Asian close by adding the overnight SOYBEX FOB Santos assessment to the Brazil-US quality spread and the freight assessment PP26 Santos, Southeast Brazil to Qingdao, North China

1.9. Normalized US Gulf CFR China Soybeans Replacement Americas close:

Is calculated in USD/mt at Asian close by adding the overnight SOYBEX FOB New Orleans assessment to the Brazil-US quality spread and the freight assessment PP35 New Orleans, US Gulf Coast to Qingdao, North China

1.10. Brazil CFR China Soybeans Margin Asia close:

Is calculated at Asian close from SOYBEX CFR China assessment minus the Normalized Brazil CFR China Soybeans Replacement Asia close.

1.11. US Gulf CFR China Soybeans Margin Asia close:

Is calculated at Asian close from SOYBEX CFR China assessment minus the Normalized US Gulf CFR China Soybeans Replacement Asia close.

1.12. Brazil CFR China Soybeans Margin Americas close:

Is calculated at Americas close from SOYBEX CFR China assessment minus the Brazil CFR China Soybeans Replacement Americas close.

1.13. US Gulf CFR China Soybeans Margin Americas close:

Is calculated at Americas close from SOYBEX CFR China assessment minus the US Gulf CFR China Soybeans Replacement Americas close.

Please send any feedback, questions or comments on the soybeans arbitrage price matrix to ags@spglobal.com and pricegroup@spglobal.com.

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