Platts proposes to launch daily CFR Indonesia Wheat Price Matrix

Platts, part of S&P Global Commodity Insights, proposes to launch a daily global CFR Indonesia wheat price matrix, and three associated calculated wheat assessments, on Dec 4.

The matrix will reflect the price of common milling wheat grades delivered into Indonesia, one of the biggest wheat importers in the world, amid increasing demand for transparency regarding delivered prices of milling wheat into Southeast Asia.

The proposed wheat CFR price matrix will include existing and new price assessments, reflecting the CFR values associated with the import of milling wheat from Australia, Canada, and the EU to Indonesia.

Indonesia is the world's third-largest wheat importer, with imports averaging 10 million mt annually. Most of the wheat imported is for flour milling, and the country imports a variety of milling grade wheat for instant noodle and general-purpose flour production.

Buyers often have inelastic volume demands for specific grades of milling wheat due to formulation restrictions and tolerances. Trade surveys have revealed that Australia, Canada, and the EU, specifically the Black Sea region excluding Romania, are the primary wheat import origins for Indonesia. Milling wheat grades imported from these regions include Australian Premium White wheat, Canadian Western Red Spring wheat, and 11.5% protein wheat from the EU.

The wheat CFR price matrix will reflect the latest Platts global assessments available at 1630 Singapore time each day.

The existing assessments to be used in the proposed matrix are as follows:

1. (WAUSA00) APW Wheat FOB Australia

2. (AWHCF00) CWRS Wheat 13.5% FOB Vancouver (60-75 days)

3. (ACVBB00) EU Wheat 11.5% FOB CVB Basis Constanta

In addition, as part of this matrix, Platts proposes to launch the following wheat assessments:

New calculated wheat assessments:

1. APW Wheat CFR Indonesia:

Will be calculated by adding the APW Wheat FOB Australia assessment to a calculation of freight costs. It will represent 60,000 mt cargo sizes delivered to Cigading 3-4 months forward.

2. CWRS Wheat 13.5% CFR Indonesia:

Will be calculated by adding the CWRS Wheat 13.5% FOB Vancouver (60-75 days ahead) to a calculation of freight costs. It will represent 60,000 mt cargo sizes delivered to Cigading 3-4 months forward.

3. EU Wheat 11.5% CFR Indonesia:

Will be calculated by adding the EU Wheat 11.5% FOB CVB Basis Constanta assessment to a calculation of freight costs. It will represent 60,000 mt cargo sizes delivered to Cigading 2-3 months forward.

Please send any feedback, questions or comments on the proposed wheat CFR price matrix by Nov. 2, to MRTS_GrainsRiceOilseeds@spglobal.com and pricegroup@spglobal.com. For written comments, please provide a clear indication if the 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 upon request.