Platts proposes to change Southeast Asia biodiesel assessment time, laycan Jul 1

S&P Global Platts proposes to change the closing time and assessed laycan for its Biodiesel FOB Southeast Asia assessment, as well as its calculation of the palm oil-gasoil spread, effective July 1, 2020.

Platts seeks to reflect the closing time that is most relevant in its physical market assessment, and has observed that physical market activity in the Asia biodiesel market may typically occur later in the day, in line with the upstream crude palm oil market. In addition, Platts has also observed that the bulk of the regional biodiesel market typically trades further forward and in monthly cycles.

CHANGE IN ASSESSMENT CLOSE: Platts is proposing to change the closing time of its biodiesel FOB Southeast Asia assessment to reflect the prevailing market value at 6:00 pm Singapore time, from July 1. The assessment currently reflects the prevailing market value at 4:30 pm Singapore time. In line with this change, Platts is also proposing to assess the value of the Bursa Malaysia crude palm oil futures (M1, M2 and M3), the USD/MYR foreign exchange rate and the PO-GO (palm oil-gasoil) spread, at 6:00 pm Singapore time from July 1, from 4:30 pm currently.

CHANGE IN PO-GO CALCULATION: Platts is also proposing to reflect the value of the third forward months in its PO-GO spread from July 1 i.e. the spread between the third forward month of the Bursa Malaysia crude palm oil futures and the third forward month of the ICE gasoil futures. Currently, the PO-GO spread reflects the prompt Bursa Malaysia crude palm oil futures versus the prompt ICE gasoil futures. Platts has observed that the market typically uses the third month PO-GO spread to gauge discretionary blending demand further forward. As such, Platts proposes to launch an assessment of third month ICE gasoil futures reflecting the value at 6:00 pm Singapore time, from July 1, to derive the PO-GO spread value.

CHANGE IN BIODIESEL ASSESSMENT LAYCAN: Platts is also proposing to reflect parcels loading one calendar month forward in its Biodiesel FOB Southeast Asia assessment, from 15-30 days forward currently. The proposed assessment laycan will roll to the next calendar month on the first publication day after the 14th of each month. For example, from September 15-October 14, the assessment will reflect parcels loading in November. The assessment will roll to December cargoes from October 15. Other assessment parameters of the Platts Biodiesel FOB Southeast Asia price will remain the same, such as specification, volume and basis ports.

The proposed changes will affect the following existing assessments: Assessment name Code Biodiesel FOB Southeast Asia AAVSV00 BMD CPO futures M1 BMAAA00 BMD CPO futures M2 BMAAA02 BMD CPO futures M3 BMAAA03 PO-GO POVGO00 USD.MYR AAWGA00. These assessments appear on Platts Biofuel (PBF) Alert pages 2, 2010 and 2310; in the Platts Biomass-based Diesel Report and Platts BiofuelScan; as well as in the Platts price database under the codes above. Please send all questions and feedback to asia_ags@spglobal.com and pricegroup@spglobal.com by May 15, 2020. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.