Platts changes Southeast Asia biodiesel assessment time, laycan, July 1

S&P Global Platts has changed 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 first proposed this change in a subscriber note published April 29: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/042920-platts-proposes-to-change-southeast-asia-biodiesel-assessment-time-laycan-jul-1

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

CHANGE IN ASSESSMENT CLOSE: Effective July 1, the Platts biodiesel FOB Southeast Asia assessment has reflected the prevailing market value at 6 pm Singapore time (1000 GMT), from a timestamp of 4:30 pm Singapore time previously. In line with this change, Platts has also been assessing the value of the Bursa Malaysia crude palm oil futures (M1, M2, and M3) and the PO-GO (palm oil-gasoil) spread at 6 pm Singapore time from July 1, instead of 4:30 pm previously.

CHANGE IN PO-GO CALCULATION: Platts has also started reflecting the value of the third forward month in its PO-GO spread from July 1, which is 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. Prior to this, the PO-GO spread reflected the prompt Bursa Malaysia crude palm oil futures versus the prompt ICE gasoil futures.

Platts understands that the market typically uses the third month PO-GO spread to gauge discretionary blending demand further forward.

To derive the PO-GO spread value, Platts has launched an assessment of third month ICE gasoil futures and a USD/MYR foreign exchange assessment, both reflecting value at 6 pm Singapore time.

The new assessments are:

The existing ICE gasoil futures value and the USD/MYR foreign exchange assessment, timestamped at 4:30 pm Singapore time, continue to be published separately.

CHANGE IN BIODIESEL ASSESSMENT LAYCAN: Platts has also started reflecting parcels loading one calendar month forward in its biodiesel FOB Southeast Asia assessment from July 1, from 15-30 days' forward previously. The assessment laycan rolls 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 remain the same, such as specification, volume, and basis ports.

The following assessments have been affected by the changes:

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 any further questions to asia_ags@spglobal.com and pricegroup@spglobal.com

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