Final decision on open consultation for soybean methodology: pricing notice

Fastmarkets invited feedback from the industry on the pricing methodology for several soybean prices via an open consultation process between April 24 and May 23, 2024. This consultation was done as part of our published annual methodology review process.

One stakeholder provided feedback regarding the proposed changes to Brazil’s soybean protein content and the reference ANEC contract for Soybean FOB Brazil Paranaguá Paper Premium and $/mt prices, which was taken into account and Fastmarkets will now implement the changes proposed as part of the consultation.

Specifically, Fastmarkets will introduce the following material changes to the methodology:

1. Specify that the laycan for domestic Brazil soybean prices comprises the 30 days immediately following the assessment day. Price indications outside this laycan will be normalized.

2. Specify that domestic Brazil soybean prices are based on deferred payments due one month after the physical delivery. Price indications outside this specification will be normalized.

3. Correct the location of Soybean FAS Paranagua R$/60kg to Brazil, Paranaguá.

4. Include oil content specifications of 18.5% for the following:

- Soybean FOB Cascavel R$/60kg
- Soybean FOB Rondonopolis R$/60kg
- Soybean FOB Ponta Grossa R$/60kg
- Soybean FAS Paranagua R$/60kg

5. Change market names for the following:

- From Soybean FOB Paranagua $/mt to Soybean FOB Brazil Paranagua Paper $/mt
- From Soybean FOB Paranagua Premium c/bu to Soybean FOB Brazil Paranagua Paper Premium c/bu
- From Soybean FOB Brazil $/mt to Soybean FOB Brazil Santos $/mt
- From Soybean FOB Brazil Premium c/bu to Soybean FOB Brazil Santos Premium c/bu

6. Change the protein specifications from 34.5% to 36.5% with a minimum of 34.5% for the following:

- Soybean CFR China $/mt
- Soybean CFR China Premium c/bu
- Soybean CFR China (Brazil) $/mt
- Soybean CFR China (Brazil) Premium c/bu
- Soybean FOB Cascavel R$/60kg
- Soybean FOB Rondonopolis R$/60kg
- Soybean FOB Ponta Grossa R$/60kg
- Soybean FAS Paranagua R$/60kg
- Soybean FOB Brazil Paranagua Paper $/mt
- Soybean FOB Brazil Paranagua Paper Premium c/bu
- Soybean FOB Brazil Santos $/mt
- Soybean FOB Brazil Santos Premium c/bu

7. Change the quality reference from ANEC contract 41 to ANEC contract 42 for the following:

- Soybean FOB Brazil Santos $/mt
- Soybean FOB Brazil Santos Premium c/bu

8. Correct the specifications so it refers only to FGIS specifications for No 2 yellow soybeans for the following:

- Soybean CFR China (USG) $/mt
- Soybean CFR China (USG) Premium c/bu

The new specifications will be as follows:

CASSP1 Soybean CFR China $/mt
Quality: Protein content minimum 34.5%. Oil content 18.5%. Max moisture 14% Specification as per ANEC contract 42 or FGIS specifications for No 2 yellow soybeans depending on whether Brazil or US origin is the cheapest
Quantity: 66,000 tonnes
Location: CFR China, Rizhao, Qingdao, Tianjin, Dalian
Timing: Shipment is the next loading month from the assessment day for the first 15 days of the month, with the laycan rolling to the second calendar month on the 16th of each month
Unit: $/mt
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 5pm Asia/Shanghai time

CASSP1P Soybean CFR China Premium c/bu
Quality: Protein content minimum 34.5%. Oil content 18.5%. Max moisture 14%. Specification as per ANEC contract 42 or FGIS specifications for No 2 yellow soybeans depending on whether Brazil or US origin is the cheapest
Quantity: 66,000 tonnes
Location: CFR China, Rizhao, Qingdao, Tianjin, Dalian
Timing: Shipment is the next loading month from the assessment day for the first 15 days of the month, with the laycan rolling to the second calendar month on the 16th of each month
Unit: c/bu
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 5pm Asia/Shanghai time

CASSP14 Soybean CFR China (USG) $/mt
Quality: Protein 34.5% min. Max moisture 13.5%. As per FGIS specifications for No 2 yellow soybeans
Quantity: 66,000 tonnes
Location: CFR China, Rizhao, Qingdao, Tianjin, Dalian
Timing: Shipment is the next loading month from the assessment day for the first 15 days of the month, with the laycan rolling to the second calendar month on the 16th of each month
Unit: $/mt
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 5pm Asia/Shanghai time

CASSP14P Soybean CFR China (USG) Premium c/bu
Quality: Protein 34.5% min. Max moisture 13.5%. As per FGIS specifications for No 2 yellow soybeans
Quantity: 66,000 tonnes
Location: CFR China, Rizhao, Qingdao, Tianjin, Dalian
Timing: Shipment is the next loading month from the assessment day for the first 15 days of the month, with the laycan rolling to the second calendar month on the 16th of each month
Unit: c/bu
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 5pm Asia/Shanghai time

CASSP13 Soybean CFR China (Brazil) $/mt
Quality: Protein content 36.5% with a minimum of 34.5%, Oil content 18.5%, Max moisture 14%, as per ANEC contract 42
Quantity: 66,000 tonnes
Location: CFR China, Rizhao, Qingdao, Tianjin, Dalian
Timing: Shipment is the next loading month from the assessment day for the first 15 days of the month, with the laycan rolling to the second calendar month on the 16th of each month
Unit: $/mt
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 5pm Asia/Shanghai time

CASSP13P Soybean CFR China (Brazil) Premium c/bu
Quality: Protein content 36.5% with a minimum of 34.5%, Oil content 18.5%, Max moisture 14%, as per ANEC contract 42
Quantity: 66,000 tonnes
Location: CFR China, Rizhao, Qingdao, Tianjin, Dalian
Timing: Shipment is the next loading month from the assessment day for the first 15 days of the month, with the laycan rolling to the second calendar month on the 16th of each month
Unit: c/bu
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 5pm Asia/Shanghai time

CASS8 Soybean FOB Brazil Paranagua Paper $/mt
Quality: Protein content 36.5% with a minimum of 34.5%, Max moisture 14%, as per ANEC contract 41
Quantity: 5,000 tonnes
Location: FOB Brazil, Paranaguá
Timing: Shipment is the next loading month from the assessment day for the first 15 days of the month, with the laycan rolling to the second calendar month on the 16th of each month.
Unit: $/mt
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 1pm New York time

CASS8P Soybean FOB Brazil Paranagua Paper Premium c/bu
Quality: Protein content 36.5% with a minimum of 34.5%, Max moisture 14%, as per ANEC contract 41
Quantity: 5,000 tonnes
Location: FOB Brazil, Paranaguá
Timing: Shipment is the next loading month from the assessment day for the first 15 days of the month, with the laycan rolling to the second calendar month on the 16th of each month.
Unit: c/bu
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 1pm New York time

CASSP4 Soybean FOB Brazil Santos $/mt
Quality: Protein content 36.5% with a minimum of 34.5%, Max moisture 14%. as per ANEC contract 42
Quantity: 66,000 tonnes
Location: FOB Brazil, Santos
Timing: Shipment is the next loading month from the assessment day for the first 15 days of the month, with the laycan rolling to the second calendar month on the 16th of each month.
Unit: $/mt
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 1pm New York time

CASSP4P Soybean FOB Brazil Santos Premium c/bu
Quality: Protein content 36.5% with a minimum of 34.5%, Max moisture 14%. as per ANEC contract 42
Quantity: 66,000 tonnes
Location: FOB Brazil, Santos
Timing: Shipment is the next loading month from the assessment day for the first 15 days of the month, with the laycan rolling to the second calendar month on the 16th of each month.
Unit: c/bu
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 1pm New York time

CASSP11 Soybean FOB Cascavel R$/60kg
Quality: Protein content 36.5% with a minimum of 34.5%, Oil content 18.5%, Max moisture 14%, as per ANEC contract 41
Quantity: 30-45 tonnes trucks
Location: FOB Brazil, Cascavel
Timing: Up to 30 days forward
Unit: R$/60kg
Payment terms: One month after delivery
Publication: Daily, timestamped 1pm New York time

CASSP10 Soybean FOB Rondonopolis R$/60kg
Quality: Protein content 36.5% with a minimum of 34.5%, Oil content 18.5%, Max moisture 14%, as per ANEC contract 41
Quantity: 30-45 tonnes trucks
Location: FOB Brazil, Rondonopolis
Timing: Up to 30 days forward
Unit: R$/60kg
Payment terms: One month after delivery
Publication: Daily, timestamped 1pm New York time

CASSP9 Soybean FOB Ponta Grossa R$/60kg
Quality: Protein content 36.5% with a minimum of 34.5%, Oil content 18.5%, Max moisture 14%, as per ANEC contract 41
Quantity: 30-45 tonnes trucks
Location: FOB Brazil, Ponta Grossa
Timing: Up to 30 days forward
Unit: R$/60kg
Payment terms: One month after delivery
Publication: Daily, timestamped 1pm New York time

CASSP12 Soybean FAS Paranagua R$/60kg
Quality: Protein content 36.5% with a minimum of 34.5%, Oil content 18.5%, Max moisture 14%, as per ANEC contract 41
Quantity: 30-45 tonnes trucks
Location: FAS Brazil, Paranaguá
Timing: Up to 30 days forward
Unit: R$/60kg
Payment terms: One month after delivery
Publication: Daily, timestamped 1pm New York time

These changes come into effect on July 1, 2024.

The open consultation sought to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This includes all elements of our pricing process, our price specifications and publication frequency.

You can find the current methodology for soybean prices at: https://www.fastmarkets.com/methodology/agriculture.