SUBSCRIBER NOTE: Platts proposes new FOB Brazil, FOB Argentina corn assessment

S&P Global Platts proposes to launch two new daily spot physical price assessments for South America corn, effective February 1, 2019. The two assessments will reflect the price of cargoes FOB Santos for Brazil and FOB Up-River for Argentina. The proposal is in line with interest in a transparent and clearly defined export prices in the region.

BRAZIL

The Brazil assessment would reflect the daily traded or tradable value basis FOB Santos port, other locations may be considered, but will be normalized back to the basis locations. The assessment would reflect cargoes of 60,000 mt plus/minus 10% operational tolerance.

Platts proposes to assess Brazil ANEC corn specification for FOB Santos assessment.

Due to the seasonality of the country's export market, the daily FOB Brazil assessment will adopt two different approaches according to the time of the year:

From July 16 to December 15, the assessment would reflect the nearby month of loading and would roll to the following calendar month on the 16th of the current month unless that day is not a business day, in which case the assessment will roll over to the next business day. For example, on July 16, Platts would assess cargoes loading over September, and on August 16, Platts would assess cargoes loading over October.

From December 16 to July 15, the assessment would reflect cargoes due to load only during the upcoming August.

ARGENTINA

The Argentine assessment would reflect the daily traded or tradable value basis FOB Up-River port. Other locations may be considered, but will be normalized back to the basis locations. The assessment would reflect 40,000 mt plus/minus 10% operational tolerance.

The assessment would reflect GAFTA grade 2 corn specification for FOB Upriver assessment.

The FOB Argentina assessment would reflect loading within the next calendar month. The assessments would roll to the following calendar month on the 16th of the current month unless that day is not a business day, in which case, the assessment rolls over on the next business day. For example, on July 15, Platts would assess loading over August, on July 16 Platts would assess loading over September.

BOTH

Platts proposes to assess publish both price assessments as cent/bushel differentials or basis as well as $/mt values using the settlement value of the CBOT corn futures contract. The assessments would reflect a market close time stamp of 5:30 pm Sao Paulo time.

Per Platts methodology, the assessment would be made using transactional information collected daily, including trades, bids and offers.

Platts welcomes all feedback and questions for the proposed new assessments until December 19. Please send all questions and feedback to america_ags@spglobal.com, with CC to pricegroup@spglobal.com.

For written comments, please provide a clear indication if 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 to the public upon request.