SUBSCRIBER NOTE: Platts changes CFR China soybeans methodology

S&P Global Platts has changed its CFR China soybeans assessment methodology, including renaming the existing assessments to reflect a change in the assessed timing and the launch of further forward assessments, as well as the launch of 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 first 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-platts-proposes-changes-to-cfr-china-soybeans-methodology

CHANGE IN TIMING/ASSESSMENT RENAME: Platts has changed its SOYBEX CFR China flat price assessment and related basis assessment methodology to reflect cargoes shipping one calendar month forward, from June 3. This is basis a Brazil shipment time into North China, and shipments from all other locations may be normalized to this timing basis. The SOYBEX CFR China flat price assessment and related basis assessment currently reflect cargoes arriving into North China four months forward. In addition, the existing assessments have been renamed SOYBEX CFR China M1 and Soybeans CFR China basis M1.

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

CHANGE IN ROLL DATES: In addition, Platts will roll its SOYBEX CFR China and related 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 has also launched equivalent Yuan/mt flat price 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 remain unchanged, including the assessment basis of CFR North China and the typical cargo size of 60,000 mt with 10% operational tolerance.

The affected assessments are as follows:

These assessments appear on Platts Agriculture Alert page 2800, in the Platts Daily Grain publication and in the Platts price database under the codes above.

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