Platts proposes to launch FOB Argentina soybean oil, meal prices Sep 3

S&P Global Platts proposes to begin publishing daily physical assessments for soybean oil and soybean meal exports out of Argentina, effective September 3, 2019, as part of efforts to bring transparency to an agriculture market that is growing in both size and global relevance.

Argentina is currently the world’s largest soybean oil and meal exporter, accounting for about 46% of global soybean oil exports and 44% of meal exports.

SOYBEAN OIL: The proposed new Soybean Oil Argentina FOB Up River assessments will reflect 1,000 mt parcels loading on an "Up River" basis in Argentina, and will reflect product meeting FOSFA 51 soybean oil specifications; other qualities may be normalized back to the reference specification.

Up River includes the San Lorenzo, Rosario and San Nicolas port areas on the Paraná River in Argentina. Bids, offers and trades for other locations and volumes may be normalized back to the basis location and volume.

Platts proposes to publish a differential price or basis (versus the relevant prevailing futures contract) as well as a flat price in US cents/pound for soybean oil, and the equivalent US dollar/mt value.

SOYBEAN MEAL: The proposed new Soybean Meal Argentina FOB Up River assessments will reflect 40,000 mt cargoes, plus or minus 10% operational tolerance, loading on an Up River basis in Argentina. Bids, offers and trades for other locations and volumes may be normalized back to the basis location and volume.

The assessments will reflect Gafta 39 soybean meal specification, but with a typical protein level of 46.5%; other protein levels or specifications may be normalized back to the reference quality.

Platts proposes to publish a differential price or basis (versus the relevant prevailing futures contract) as well as a flat price in US dollar/short ton for soybean meal, and the equivalent US dollar/mt value.

The new soybean oil and soybean meal assessments would both reflect parcels loading one calendar month forward. These would roll to the next calendar month on the first publication day after the 15th of each month. For example, from September 16-October 15, the assessments would reflect parcels loading in November, while from October 16-November 15, the assessments would reflect parcels loading in December.

All the assessments would reflect the prevailing market value at 5:30 pm São Paulo time.

Please send all feedback and questions by August 5 to americas_ags@spglobal.com and 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 to the public upon request.