Platts launches CFR China soybean crush

S&P Global Platts has launched a daily CFR China soybeans crush margin, effective Nov. 2, 2020.

The launch of this calculation brings together Platts SOYBEX CFR China soybeans, and DCE soybean oil and meal prices on the domestic market. The crush margin calculation is part of efforts to bring further transparency to the global oilseeds, vegetable oil and animal feed markets.

China has the world's largest soybean crushing capacity with an average volume of 90.3 million mt of soybeans crushed over the past five years, representing 30% of volume of soybeans crushed globally, according to USDA data. China is also the world's largest importer of soybeans – importing more than 60% of soybeans traded worldwide, or 93.4 million mt of soybeans on average over the past 5 years.

The CFR China soybean gross crush margin calculation will compare Platts SOYBEX CFR China M1 shipment price assessment and the domestic soybean meal and oil values represented by DCE soybean meal and oil futures.

To calculate the gross crush margin, Platts uses the most liquid months of DCE's soybean meal and oil futures contracts: January, May and September at 3PM Beijing closing time.

Based on market feedback, Platts will publish the gross China soybean crush margin with a 79% soybean meal yield and a 19% soybean oil yield.

The soybean crush calculation will be as follows:

DCE Soybean Meal x 0.79 + DCE Soybean Oil x 0.19 minus the Handling cost at 50 CNY/mt and minus the cost of imported soybeans (CFR China SOYBEX M1), adding the 3% import tax and the 9% VAT.

The crush margin value will be published both in US dollars per metric ton and Yuan/mt. The conversion into US dollars/mt will be done using the relevant USD.CNY exchange rate.

The gross crush margin is time stamped at 4.30 pm Singapore time (0830 GMT) and follows Singapore and China publishing schedules.

Please send all feedback and questions to asia_ags@spglobal.com and pricegroup@spglobal.com

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