Platts proposes to launch FOB Brazil soybean oil, meal prices March 16

S&P Global Platts proposes to begin publishing daily physical assessments for soybean oil and soybean meal exports out of Brazil, effective March 16, 2020, as part of efforts to bring further transparency to the global vegetable oil and animal feed markets.

Brazil has one of the world's largest soybean crushing capacity, and is the second largest exporter globally for both soybean meal and soybean oil. Since 2010, Brazil has accounted for 10%-15% of global soybean oil exports and 20%-25% of meal exports, according to data from the United States Department of Agriculture.

SOYBEAN OIL: The proposed new Brazil Soybean Oil assessments will reflect 1,000 mt parcels loading on an FOB Paranagua basis, and will reflect product meeting ANEC 81 soybean oil specifications. Bids, offers and trades for other locations and volumes may be normalized back to the basis location and volume.

Platts proposes to publish a differential price, or basis, versus the relevant prevailing futures contract in points per pound (where one US cent is equivalent to 100 points), as well as the flat price in US dollars/mt.

SOYBEAN MEAL: The proposed new Brazil Soybean Meal assessments will reflect 5,000 mt, parcels loading on an FOB Paranagua basis. Bids, offers and trades for other locations and volumes may be normalized back to the basis location and volume.

The assessments will reflect ANEC 71 soybean meal specification, but with a typical protein level of 46%; other protein levels or specifications may be normalized back to the reference quality.

Platts proposes to publish a differential price, or basis, versus the relevant prevailing futures contract in US dollars/short ton, as well as the flat price in US dollars/mt.

The new soybean oil and soybean meal assessments would both reflect parcels loading one calendar month forward. These would roll to the next calendar month on the first publication day after the 15th of each month. For example, from March 16-April 15, the assessments would reflect parcels loading in May, while from April 16-May 15, the assessments would reflect parcels loading in June.

All the assessments would reflect the prevailing market value at 5:30 pm São Paulo time.

Please send all feedback and questions by January 6 to americas_ags@spglobal.com and pricegroup@spglobal.com.

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