SUBSCRIBER NOTE: Platts clarifies methodology for NWE T1 ethanol assessments

The T1 CIF NWE and FOB Rotterdam assessments represent the lowest calculated net-forward value from a basket of daily established values, basis 16:30 London time, for FOB Santos and FOB Chicago Argo ethanol, as provided by Platts' regional teams.

The Platts European T1 CIF NWE assessment reflects minimum 3,000 mt (or the equivalent in cubic meters) cargoes, basis Rotterdam. A premium is applied to convert ASTM to EN spec in the case of the Chicago Argo value. Premiums are applied to convert ANP to EN spec and for Bonsucro PoS in the case of the FOB Santos value. All premiums are based on market feedback. The net-forward calculation uses an assessment of freight rates based on freight reports and market feedback. The assessment uses a density value of 0.7887 g/cm3 for converting metric tons into cubic meters.

The T1 FOB Rotterdam assessment reflects 1,000 mt (or the equivalent in cubic meters) barges. It is assessed at a fixed premium of $12/cu m versus the T1 CIF NWE assessment, which represents logistics costs.