Open consultation on methodology for vegetable oils, meals

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

This consultation, which is open until Thursday October 31, 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 would specifically like to propose the following material changes to the methodology:

1. Change the following market names:

  • From Soymeal FOB Paranagua SMP $/mt to Soymeal FOB Brazil SMP $/mt
  • From Soymeal FOB Paranagua SMP Premium $/st to Soymeal FOB Brazil SMP Premium $/st
  • From Soymeal CIF AR SMP (BR) $/mt to Soymeal CIF AR SMP (Brazil) $/mt
  • From Soymeal CIF AR (BR) Hipro $/mt to Soymeal CIF AR Hipro (Brazil) $/mt
  • From Soymeal CIF AR (ARG) Hipro $/mt to Soymeal CIF AR Hipro (Argentina) $/mt

2. Change the specifications of Soymeal FOB Brazil SMP $/mt and Soymeal FOB Brazil SMP Premium $/st to 48% profat with maximum 2% fat, 12.5% moisture with maximum of 13%, 7% fiber content, 7% maximum ash content

3. Change the specifications of Soymeal FOB Argentina $/mt and Soymeal FOB Argentina Premium $/st to 46.5% protein with minimum of 45.5%, 12.5% moisture with maximum of 13%, 3.5% fiber content with maximum of 4%

4. Change the specification of Soymeal CIF US Gulf Barge Hipro $/mt, Soymeal CIF US Gulf Barge Hipro Premium $/st, Soymeal FOB US Gulf Hipro $/mt and Soymeal FOB US Gulf Hipro Premium $/st to 46.5% protein with minimum of 45.5%, 3.5% fiber content with maximum of 4.5%, 12.5% moisture with maximum of 13%

5. Change the specification of Soymeal CIF AR SMP (Brazil) $/mt to 46% protein, 13% maximum moisture, 7% maximum ash content

6. Change the specification of Soymeal CIF AR Hipro (Brazil) $/mt to 48% protein, 13% maximum moisture, 7% maximum ash content

7. Change the specification of Soymeal CIF AR Hipro (Argentina) $/mt to 46.5% protein, 13% maximum moisture

7. Change the specifications of Soyoil FOB Brazil $/mt and Soyoil FOB Brazil Premium ¢/lb to 1% FFA basis with maximum of 1.25%, 0.2% maximum moisture

8. Change the specifications of Soyoil FOB Argentina $/mt and Soyoil FOB Argentina Premium ¢/lb to 1% FFA basis with maximum of 1.25%, 0.2% of maximum moisture

9. Change the specifications of Soyoil CFR India $/mt to 1% FFA basis with maximum of 1.25%, 0.1% maximum moisture

10. Change the specification of Soyoil FOB Brazil $/mt, Soyoil FOB Brazil Premium ¢/lb, Soyoil FOB Argentina $/mt and Soyoil FOB Argentina Premium ¢/lb from 20,000-40,000 tonne cargoes to 1,000 tonne parcels

The new specifications would be as follows:

AG-SYB-0033 Soymeal FOB Brazil SMP $/mt
Quality: 48% profat, max 2% fat, 12.5% moisture max 13%, 7% fiber content, 7% max ash content 
Quantity: 1,000 tonne
Location: 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 US/New York time

AG-SYB-0034 Soymeal FOB Brazil SMP Premium $/st
Quality: 48% profat, max 2% fat, 12.5% moisture max 13%, 7% fiber content, 7% max ash content 
Quantity: 1,000 tonne
Location: 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: $/st
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 1pm US/New York time

AG-SYB-0035 Soymeal FOB Argentina $/mt
Quality: 46.5% protein min 45.5%, 12.5% moisture max 13%, 3.5% fiber content max 4%
Quantity: 40,000 tonne 
Location: Argentina, Buenos Aires, San Nicolas, San Lorenzo, Santa Fe, Zarate
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 US/New York time

AG-SYB-0036 Soymeal FOB Argentina Premium $/st
Quality: 46.5% protein min 45.5%, 12.5% moisture max 13%, 3.5% fiber content max 4%
Quantity: 40,000 tonne
Location: Argentina, Buenos Aires, San Nicolas, San Lorenzo, Santa Fe, Zarate
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: $/st
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 1pm US/New York time

AG-SYB-0037 Soymeal CIF US Gulf Barge Hipro $/mt
Quality: 46.5% protein min 45.5%, 3.5% fiber content max 4.5%, 12.5% moisture max 13%
Quantity: 1,000-5,000 tonnes
Location: US Gulf, New Orleans
Timing: First full calendar month
Unit: $/mt
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 1pm US/New York time

AG-SYB-0038 Soymeal CIF US Gulf Barge Hipro Premium $/st
Quality: 46.5% protein min 45.5%, 3.5% fiber content max 4.5%, 12.5% moisture max 13%
Quantity: 1,000-5,000 tonnes
Location: US Gulf, New Orleans
Timing: First full calendar month
Unit: $/st
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 1pm US/New York time

AG-SYB-0039 Soymeal FOB US Gulf Hipro $/mt
Quality: 46.5% protein min 45.5%, 3.5% fiber content max 4.5%, 12.5% moisture max 13%
Quantity: 20,000-40,000 tonnes
Location: US Gulf, New Orleans
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 US/New York time

AG-SYB-0040 Soymeal FOB US Gulf Hipro Premium $/st
Quality: 46.5% protein min 45.5%, 3.5% fiber content max 4.5%, 12.5% moisture max 13%
Quantity: 20,000-40,000 tonnes
Location: US Gulf, New Orleans
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: $/st
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 1pm US/New York time

AG-SYB-0041 Soymeal CIF AR SMP (Brazil) $/mt
Quality: 46% protein, 13% max moisture, 7% max ash content
Quantity: 20,000-40,000 tonnes
Location: Amsterdam, Rotterdam
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 4pm UK/London time

AG-SYB-0042 Soymeal CIF AR Hipro (Brazil) $/mt
Quality: 48% protein, 13% max moisture, 7% max ash content
Quantity: 20,000-40,000 tonnes
Location: Amsterdam, Rotterdam
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 4pm UK/London time

AG-SYB-0043 Soymeal CIF AR Hipro (Argentina) $/mt
Quality: 46.5% protein, 13% max moisture
Quantity: 20,000-40,000 tonnes
Location: Amsterdam, Rotterdam
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 4pm UK/London time

AG-SYB-0026 Soyoil FOB Argentina $/mt
Quality: 1% FFA max 1.25%, 0.2% max moisture 
Quantity: 1,000 tonnes
Location: Argentina, Buenos Aires, San Nicolas, San Lorenzo, Santa Fe, Zarate
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 US/New York time

AG-SYB-0027 Soyoil FOB Argentina Premium ¢/lb
Quality: 1% FFA max 1.25%, 0.2% max moisture 
Quantity: 1,000 tonnes
Location: Argentina, Buenos Aires, San Nicolas, San Lorenzo, Santa Fe, Zarate
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: ¢/lb
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 1pm US/New York time

AG-SYB-0028 Soyoil FOB Brazil $/mt
Quality: 1% FFA max 1.25%, 0.2% max moisture 
Quantity: 1,000 tonnes
Location: 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 US/New York time

AG-SYB-0029 Soyoil FOB Brazil Premium ¢/lb
Quality: 1% FFA max 1.25%, 0.2% max moisture 
Quantity: 1,000 tonnes
Location: 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: ¢/lb
Payment terms: irrevocable LC at sight
Publication: Daily, timestamped 1pm US/New York time

AG-SYB-0032 Soyoil CFR India $/mt
Quality: 1% FFA max 1.25%, 0.1% max moisture 
Quantity: 10,000-20,000 tonnes
Location: West Coast India
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 6pm Asia/Singapore

Please send responses in writing, preferably in electronic format, to the following address: pricing.ags@fastmarkets.com. Please add the subject heading ‘Methodology vegoils and meals 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 November 8, 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.

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