Platts launches Milling Wheat Marker

Platts, part of S&P Global Commodity Insights, has launched the daily Milling Wheat Marker (BSMWM00), effective June 2.

The Milling Wheat Marker (MWM) represents the most competitive handysize vessel of the 12.5% protein milling wheat from the Black Sea, the world's most important export region, providing a transparent and robust benchmark for milling wheat trade.

MWM is determined using the most competitive value from three of Platts' daily wheat assessments:

• Russian Wheat 12.5% FOB Black Sea (WRBSD00)
• Wheat FOB CVB 12.5% (ACVBA00)
• Ukraine Wheat 11.5% FOB Black Sea (WUBSA00)

Platts applies a quality normalization to the Ukraine 11.5% assessment to account for its lower protein content. The quality normalization considers the average price difference between the most competitive 12.5% wheat from Russia or CVB and Ukraine's 11.5% wheat over the previous calendar month. Based on market feedback, Platts then applies an adjustment factor of 140% in order to bring the values to a point of comparability. This factor is reviewed monthly and adjusted as required.

For example, if the average price difference of April is $5/mt, a quality normalization of $7/mt (140% x $5/mt) is added to the daily Ukraine 11.5% wheat assessment in May, before it is evaluated in the Milling Wheat Marker. This adjustment considers the trade-offs buyers face when selecting between lower protein wheat and higher protein options.

Platts publishes values against the below symbols, available on Platts Connect:

Through the consideration of the most competitive value among the three relevant assessments, the Milling Wheat Marker captures overall regional fundamentals in the Black Sea and provides a mechanism for assessing and planning purchases reflecting a diversity of supply routes.

The other specifications reflected by the 12.5% protein assessments are as follows:

• Quality: A minimum test weight of 77 kg/hl, a maximum moisture content of 14%, a minimum wet gluten content of 25%, a minimum W number of 180, a minimum Hagberg Falling Number of 250 seconds, maximum foreign matter content of 2%.
• Timing: Loading 28-42 days ahead of date of publication
• Unit of assessment: US dollars per mt ($/mt)

Full details of the specifications for the Russia, Ukraine, CVB wheat assessments that inform the Milling Wheat Marker can be found here(opens in a new tab).

The Milling Wheat Marker monthly average is to be published under the symbol code BSMWM03. The daily assessment and monthly averages are published on Europe Grain Assessments (PAA1440) and Europe Grain Monthly Averages (PAA1612), in Platts Daily Grains and on Platts Connect.

The daily assessments reflect a 4:30 pm London timestamp and follow the Platts London publishing schedule.

Please send any feedback, questions, or comments to MRTS_AgricultureandFood@spglobal.com , copying pricegroup@spglobal.com.

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.