S&P Global Platts has launched a daily Crude Palm Oil (CPO) CIF Rotterdam assessment and a daily Crude Palm Kernel Oil (CPKO) CIF Rotterdam assessment, effective November 1, 2019.
Platts first proposed this in a subscriber note published September 12.
This follows continued growth in the European palm oil market, with the EU now accounting for 10% of global demand. Indonesia and Malaysia currently represent around 90% of global palm oil supply.
Following a period of market research and outreach, Platts has launched both assessments, which reflect the prevailing value of the market at 4:30 pm London time. Both assessments are published in US dollars/mt.
The CIF Rotterdam assessments reflect typical Malaysian/Indonesian quality CPO and CPKO respectively. Both assessments represent material with maximum Free Fatty Acids (FFA) content of 5% and maximum Moisture and Impurities (M&I) content of 0.50%.
Both assessments reflect a typical parcel size of 500 mt. The CPO CIF Rotterdam assessment reflects parcels for shipment one calendar month forward; the CPKO CIF Rotterdam assessment reflects parcels for shipment one month forward, but over a period of two calendar months. Both are basis a Malaysia/Indonesia shipment time into Rotterdam.
The assessment laycan for both assessments rolls over to the next calendar month on the first publication day after the 15th of each month.
For example, from October 16-November 15, the CPO CIF Rotterdam assessment will reflect parcels shipping in December, while the CPKO CIF Rotterdam assessment will reflect parcels shipping over December-January. From November 16-December 15, the CPO CIF Rotterdam assessment will reflect parcels shipping in January, while the CPKO CIF Rotterdam assessment will reflect parcels shipping over January-February.
During the Platts Market on Close assessment process, Platts will seek to publish all relevant market information including bids, offers or trades of CPO and CPKO of different specifications, locations and volume; these may be normalized to the standard for assessment purposes.
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 upon request.