Platts proposes to launch global soybeans arbitrage price matrix

S&P Global Platts proposes to launch a daily global soybeans arbitrage price matrix to reflect the competitiveness of each major export origin delivered to China, the world's largest soybeans importer. The proposed soybeans arbitrage price matrix would launch March 16, 2022.

The proposed price matrix will reflect the replacement values and profit margin calculations, in USD, associated with the import of soybeans from the US Gulf Coast and Brazil at destinations in North China.

As the worlds largest importer of soybeans, China imports more than 60% of soybeans traded worldwide, or 95 million mt of soybeans on average over the past five years.

The soybeans arbitrage price matrix will reflect replacement and profit margin calculations twice a day, first at 4:30 pm Singapore time, in line with the Market on Close timestamp of the existing Platts SOYBEX CFR China assessment and at 5.30 pm Sao Paulo time, in line with the Market on Close timestamp of the existing Platts SOYBEX FOB Santos assessment.

As part of this matrix, Platts proposes to use the following existing assessments:

1. SOYBEX CFR China (M1) - SYBAB00

2. Soybeans CFR China basis (M1) - SYBAA00

3. SOYBEX FOB Santos - SYBBB00

4. Soybeans FOB Santos basis - SYBBA00

5. SOYBEX FOB New Orleans - SYBBI00

6. Soybeans FOB New Orleans basis - SYBBJ00

7. Freight route PP26. Santos, Southeast Brazil to Qingdao, North China - GRSQC00

8. Freight route PP35. New Orleans, US Gulf Coast to Qingdao, North China - GRNOQ00

Platts also proposes to launch the following net forwards and margin calculations:

1.1. Brazil CFR China Soybeans Replacement Asia close:

Will be calculated in cents/bushel at the Asian close by adding the overnight SOYBEX FOB Santos basis assessment to the freight assessment PP26 Santos, Southeast Brazil to Qingdao, North China

1.2. US Gulf CFR China Soybeans Replacement Asia close:

Will be calculated in cents/bushel at the Asian close by adding the overnight SOYBEX FOB New Orleans basis assessment to the freight assessment PP35 New Orleans, US Gulf Coast to Qingdao, North China

1.3. Brazil CFR China Soybeans Replacement Americas close:

Will be calculated in cents/bushel at Americas close by adding the overnight SOYBEX FOB Santos basis assessment to the freight assessment PP26 Santos, Southeast Brazil to Qingdao, North China

1.4. US Gulf CFR China Soybeans Replacement Americas close:

Will be calculated in cents/bushel at Americas close by adding the overnight SOYBEX FOB New Orleans basis assessment to the freight assessment PP35 New Orleans, US Gulf Coast to Qingdao, North China

1.5. Quality spread with Brazil:

Will reflect the quality spread of Brazilian origin soybeans versus US Gulf-origin soybeans.

1.6. Normalized Brazil CFR China Soybeans Replacement Asia close:

Will be calculated in USD/mt at Asian close by adding the overnight SOYBEX FOB Santos assessment to the Brazil-US quality spread and freight assessment PP26 Santos, Southeast Brazil to Qingdao, North China

1.7. Normalized US Gulf CFR China Soybeans Replacement Asia close:

Will be calculated in USD/mt at the Asian close by adding the overnight SOYBEX FOB New Orleans assessment to the Brazil-US quality spread and the freight assessment PP35 New Orleans, US Gulf Coast to Qingdao, North China

1.8. Normalized Brazil CFR China Soybeans Replacement Americas close:

Will be calculated in USD/mt at the Asian close by adding the overnight SOYBEX FOB Santos assessment to the Brazil-US quality spread and the freight assessment PP26 Santos, Southeast Brazil to Qingdao, North China

1.9. Normalized US Gulf CFR China Soybeans Replacement Americas close:

Will be calculated in USD/mt at the Asian close by adding the overnight SOYBEX FOB New Orleans assessment to the Brazil-US quality spread and the freight assessment PP35 New Orleans, US Gulf Coast to Qingdao, North China

1.10. Brazil CFR China Soybeans Margin Asia close:

Will be calculated at the Asian close from SOYBEX CFR China assessment minus the Normalized Brazil CFR China Soybeans Replacement Asia close.

1.11. US Gulf CFR China Soybeans Margin Asia close:

Will be calculated at the Asian close from SOYBEX CFR China assessment minus the Normalized US Gulf CFR China Soybeans Replacement Asia close.

1.12. Brazil CFR China Soybeans Margin Americas close:

Will be calculated at Americas close from SOYBEX CFR China assessment minus the Brazil CFR China Soybeans Replacement Americas close.

1.13. US Gulf CFR China Soybeans Margin Americas close:

Will be calculated at Americas close from SOYBEX CFR China assessment minus the US Gulf CFR China Soybeans Replacement Americas close.

Please send any feedback, questions or comments on the proposed soybeans arbitrage price matrix by Feb. 9, 2022 to ags@spglobal.com and pricegroup@spglobal.com.

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