S&P Global Platts proposes to launch a daily FOB Black Sea assessment reflecting Ukraine 11.5% wheat, effective April 1, 2020, to bring further price transparency to the Black Sea wheat market.
Ukraine is Europe's second-largest wheat exporter by volume, after Russia. Ukraine's wheat export projections for the 2019/20 marketing year ending June 2020 were revised upwards by 28% to 20.5 million mt in the January 2020 world agricultural supply and demand estimates (WASDE) report by the US Department of Agriculture, following a 16% jump in Ukraine's wheat production in 2019 to 29 million mt. Platts understands that Ukraine primarily exports 11.5% milling-grade wheat, in addition to feed-grade wheat.
Platts already publishes a daily FOB Black Sea assessment reflecting Russia 12.5% wheat.
The proposed new FOB Black Sea (Ukraine, 11.5%) assessment would reflect soft wheat with a protein content of 11.5%, a minimum test weight of 77 kg/hl, a maximum moisture content of 14%, a minimum wet gluten content of 23%, a minimum W number of 160, a minimum Hagberg Falling Number of 230 seconds, maximum bug damage of 2% and maximum foreign matter content of 2%. Other qualities may be considered for assessment purposes, but will be normalized back to this standard.
The proposed new assessment would reflect 25,000 mt cargoes loading 28-42 days forward from the Ukrainian Panamax-capable ports of Odessa, Pivdennyi and Chornomorsk. Platts may include pricing information for other quantities, laycans or loading ports, but these will be normalized to the standard for assessment purposes.
The proposed new assessment would reflect the prevailing market value at 4:30 pm London time.
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