Open consultation on methodology for soybeans: pricing notice

Fastmarkets is inviting feedback from the industry on the pricing methodology for several soybean prices as part of its announced annual methodology review process.

This consultation, which is open until Thursday May 23, 2024, seeks 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 here https://www.fastmarkets.com/methodology/.

As part of this consultation, following discussion with market participants, Fastmarkets Agriculture would specifically like to propose the following material changes to the methodology:

1. To specify that the laycan of prices assessed in the Soybean Spot only market assessment group comprises the 30 days immediately following the assessment day. Price indications outside this laycan will be normalized.

2. To specify that prices assessed in the Soybean Spot only market assessment group 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. To 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. To 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. To change the protein specifications from 34.5% to 37.5% with a minimum of 35% 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. To change the quality reference from ANEC contract 41 to ANEC contract 42 for the following:
- 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

8. To 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 would 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 37.5% with a minimum of 35%, 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 37.5% with a minimum of 35%, 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 37.5% with a minimum of 35%, 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 37.5% with a minimum of 35%, 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 37.5% with a minimum of 35%, 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 37.5% with a minimum of 35%, 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$/60kg
Quality: Protein content 37.5% with a minimum of 35%, Oil content 18.5%, Max moisture 14%, as per ANEC contract 41
Quantity: 30-45 tonnes trucks
Location: FOB Brazil, Cascavel
Timing: Up to 30 days forward
Unit: R$/60kg
Payment terms: One month after delivery
Publication: Daily, timestamped 1pm New York time

CASSP10 Soybean FOB Rondonopolis R$/60kg
Quality: Protein content 37.5% with a minimum of 35%, Oil content 18.5%, Max moisture 14%, as per ANEC contract 41
Quantity: 30-45 tonnes trucks
Location: FOB Brazil, Rondonopolis
Timing: Up to 30 days forward
Unit: R$/60kg
Payment terms: One month after delivery
Publication: Daily, timestamped 1pm New York time

CASSP9 Soybean FOB Ponta Grossa R$/60kg
Quality: Protein content 37.5% with a minimum of 35%, Oil content 18.5%, Max moisture 14%, as per ANEC contract 41
Quantity: 30-45 tonnes trucks
Location: FOB Brazil, Ponta Grossa
Timing: Up to 30 days forward
Unit: R$/60kg
Payment terms: One month after delivery
Publication: Daily, timestamped 1pm New York time

CASSP12 Soybean FAS Paranagua R$/60kg
Quality: Protein content 37.5% with a minimum of 35%, Oil content 18.5%, Max moisture 14%, as per ANEC contract 41
Quantity: 30-45 tonnes trucks
Location: FAS Brazil, Paranaguá
Timing: Up to 30 days forward
Unit: R$/60kg
Payment terms: One month after delivery
Publication: Daily, timestamped 1pm New York time

Please send responses in writing, preferably in electronic format, to the following address: pricing.ags@fastmarkets.com. Please add the subject heading ‘Methodology Soybean annual review, 2024’. Please specify whether your response is confidential. Opinions offered in confidential responses may be referenced but will not be attributed in any way.

Fastmarkets will publish the outcome of this methodology review by May 30, 2024, including a summary of the feedback – except those responses marked as confidential. Any proposals to make material changes, discontinue or launch prices will involve a separate market consultation, the length of which will depend on how substantial the change is.

To see all Fastmarkets pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology/agriculture/.