SUBSCRIBER NOTE: Open consultation on methodology for Global Wheat

Fastmarkets Agriculture is inviting feedback from the industry on the pricing methodologies for Global Wheat as part of its announced annual methodology review process.

This consultation, which is open until November 6, 2023, 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 Global Wheat here.

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 change the protein content from 12% for CVB wheat to 11.5% to better reflect what the market is trading;

2.      To change the protein content from 11.5% for French wheat to 11% to better reflect what the market is trading;

3.      To alter the formula for Wheat CFR North Africa to include Wheat 11% FOB France, replacing Wheat 12.5% FOB Germany

4.      To add a freight route for freight Constanta to West Med to reflect the difference between Ukraine-Spain and CVB-Spain freight for corn and wheat markets used to calculate Wheat CIF Spain FW.

These changes would take effect from Jan 1, 2024.

Please send responses in writing, preferably in electronic format, to the following address: pricing.ags@fastmarkets.com.

Please add the respective subject heading “Global Wheat 2023.” 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 November 30, 2023, including a summary of the feedback with the exception of those 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.