SUBSCRIBER NOTE: Platts to change CFR China soybeans methodology June 3, 2019

S&P Global Platts will change its CFR China soybeans assessment methodology, including the assessment timing, as well as launch a further forward SOYBEX CFR China and Soybeans CFR China assessment and equivalent Yuan/mt prices, effective June 3, 2019, to better reflect spot market activity amid changing trade flows.

The change follows extensive feedback from the industry.

Platts proposed the amendment to the CFR China soybeans methodology in a subscriber note published April 26, 2019: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/042619-pl atts-proposes-changes-to-cfr-china-soybeans-methodology

CHANGE IN TIMING: Platts will amend its SOYBEX CFR China assessment and related Soybeans CFR China basis assessment, which will be renamed Soybeans CFR China M1 basis to reflect cargoes shipping one calendar month forward, from June 3. This will be basis Brazil shipment time into North China, and shipments from all other locations may be normalized to this timing basis. The SOYBEX CFR China assessment and related basis assessment currently reflect cargoes arriving into North China four months forward.

FORWARD MONTH LAUNCH: Platts will also launch an additional SOYBEX CFR China M2 flat price assessment in US dollars/mt and a related Soybeans CFR China M2 basis assessment in US cents/bushel, which would reflect cargoes shipping two calendar months forward. This would also be basis Brazil shipment time into North China.

CHANGE IN ROLL DATES: In addition, Platts will roll its SOYBEX CFR China and Soybeans CFR China assessments to the following calendar month on the first publication day after the 15th of each month, effective June 3. Currently, these are rolled to the next forward calendar month on the first day of each month.

For example under the new methodology, from July 16-August 15, the SOYBEX CFR China and Soybeans CFR China assessments would reflect cargoes shipping in September (M1) and October (M2), while from August 16-September 15, the SOYBEX CFR China and Soybeans CFR China assessments would reflect cargoes shipping in October (M1) and November (M2).

NEW YUAN/MT ASSESSMENTS: Platts will launch equivalent Yuan/mt Soybeans CFR China M1 and M2 assessments, using the daily Bank of China US dollar/Chinese Yuan rate.

Platts would also like to clarify that its SOYBEX CFR China and related basis assessments reflect Brazil soybean specification, as per ANEC 41 and 42 Brazilian soybeans quality clause, with oil content of 18.5% and a standard protein level of 34.5%. Shipments reflecting other specifications may be normalized to this basis.

All other aspects of the CFR China soybeans methodology will remain unchanged, including the assessment basis of CFR North China and the typical cargo size of 60,000 mt with 10% operational tolerance.

Please send all comments and questions to asia_ags@spglobal.com and pricegroup@spglobal.com.

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