SUBSCRIBER NOTE: Platts launches new palm oil/gasoil spread

Platts made the decision to launch a new palm oil/gasoil spread at Singapore close on February 2, 2015.

The spread reflects the value of the first-month crude palm oil futures contract on the Bursa Malaysia (BMD) minus the value of the front-month InterContinental Exchange (ICE) gasoil futures at 4:30 pm Singapore time (0830 GMT).

The assessment under the code POVGO00 was launched to reflect market practice of measuring the spread of palm oil against gasoil, and is published in the Platts Biofuelscan, and under the code POVGO00 in the Platts database.

The assessment is expressed in US dollars per metric ton. The current GO-PO spread, which reflects the value of first-month gasoil futures against first-month crude palm oil futures will be discontinued from May 15, 2015.

GO-PO measures the spread as gasoil minus Palm oil, while in the general market the spread is typically expressed as Palm oil minus gasoil.