Platts launches amended use of futures assessments in generating ethanol forward curve

S&P Global Platts amends how it uses its ethanol futures assessments when calculating the European T2 ethanol forward curve, effective Sept. 21.

The launch date was updated from the previously proposed date of Sept. 20, 2021. The proposal note can be found here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/080621-platts-proposes-to-amend-use-of-futures-assessments-in-generating-ethanol-forward-curve and the decision note can be found here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/082021-platts-amends-use-of-futures-assessments-in-generating-ethanol-forward-curve.

Platts uses the ethanol forward curve as part of a calculated value known as the Mean of Platts (MOPL). Physical indications are tested for value against the MOPL, as well as against other relevant information such as the previous day's assessment, in order to determine their competitiveness.

The MOPL is one element that can contribute to the daily Platts ethanol assessment. Platts currently generates the MOPL using balance month and month 1 (M1) ethanol futures for the first two-thirds of each month. As a result of this change, Platts will instead use the M1/M2 futures assessments to generate the MOPL. The ethanol futures assessments (months 1-6) would continue to roll on the first day of each month. For example, on Oct. 29, 2021, Platts will publish November futures as M1 and December as M2. On Nov. 1, 2021, Platts will no longer publish November futures, and December will become M1.

Please send all comments, feedback and questions to ags@spglobal.com and pricegroup@spglobal.com.

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