Platts to launch daily Crude Palm Oil, RBD Palm Stearin, PFAD assessments Sep 2

S&P Global Platts will launch on September 2, 2019, daily crude palm oil FOB Indonesia and CFR west coast India assessments, as well as daily FOB Indonesia palm fatty acid distillate and FOB Indonesia refined, bleached deodorized palm stearin assessments, to bring greater transparency to this growing market.

Global CPO production in 2018 was around 73.3 million mt, a 7% increase year on year, with Indonesia accounting for nearly 56%. India is the single largest importer of palm oil globally. India takes more than 60% of total world palm oil exports, and its imports are expected to rise by around 10% in the current marketing year, according to industry association estimates. CPO derivative PFAD is used, for example, to produce animal feed, soap and biodiesel, while RBD palm stearin is used to manufacture products such as margarine, candles and soap.

Following a period of market research and outreach, Platts plans to launch the following assessments. All the assessments will be published in US dollars/mt and will reflect the prevailing value of the market at 6:00 pm Singapore time (1000 GMT).

CPO

SPECIFICATIONS: The FOB Indonesia CPO assessment will reflect the following specifications: Maximum free fatty acids (as palmitic) content of 5% and maximum moisture and impurities (M&I) content of 0.5%. The CFR India CPO assessments would reflect maximum FFA (as palmitic) content of 4.5% and maximum M&I content of 0.5%.

LOCATION & VOLUME: The FOB Indonesia CPO assessment would reflect parcels loading out of Dumai, while the CFR west coast India CPO assessment would reflect parcels for delivery into Kandla. Both assessments will reflect a typical clip size of 1,000 mt.

LAYCAN: Both the FOB Indonesia and CFR west coast India CPO assessments will reflect parcels shipping one month forward. For the CFR west coast India CPO assessment, this is basis an Indonesian shipment time into west coast India. The assessment laycan will roll over to the next calendar month on the first publication day after the 15th. For example, from July 16-August 15, the FOB Indonesia and CFR west coast India CPO assessments would both reflect parcels shipping in September, while from August 16-September 15, the assessments would reflect parcels shipping in October.

PFAD

SPECIFICATIONS: The FOB Indonesia PFAD assessment will reflect the specifications for PFAD as defined by the Palm Oil Refiners Association of Malaysia (PORAM).

LOCATION & VOLUME: The assessment would reflect parcels loading out of Dumai, with a typical clip size of 500 mt.

LAYCAN: The assessment would reflect parcels shipping one month forward, but over a period of two calendar months. The assessment laycan will roll over to the next two calendar months on the first publication day after the 15th. For example, from July 16-August 15, the FOB Indonesia PFAD assessment would reflect parcels loading over September-October, while from August 16-September 15, the assessments would reflect parcels loading over October-November.

RBD Palm Stearin

SPECIFICATIONS: The FOB Indonesia RBD Palm Stearin assessment will reflect the specifications for RBD Palm Stearin as defined by PORAM.

LOCATION & VOLUME: The FOB Indonesia RBD Palm Stearin assessment would reflect parcels loading out of Dumai, with a typical clip size of 500 mt.

LAYCAN: The assessment would reflect parcels shipping one month forward, but over a period of two calendar months. The assessment laycan will roll over to the next two calendar months on the first publication day after the 15th. For example, from July 16-August 15, the FOB Indonesia RBD Palm Stearin assessment would reflect parcels shipping over September-October, while from August 16-September 15, the assessment would reflect parcels shipping over October-November.

These assessments will appear on Platts Agriculture Alert page 2806, in the Platts Daily Grains and Oilseeds publication, and in the Platts price database under the following codes:

CPO FOB Indonesia (ACPOA00)

CPO CFR WC India (ACPOB00)

PFAD FOB Indonesia (APFAD00) and

RBD Palm Stearin FOB Indonesia (ARBSA00)

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

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