Soybean price assessments

Platts assessments are based on robust and transparent market data that includes, but is not limited to, firm bids and offers, expressions of interest to trade, and confirmed trades reported across the trading day.

Platts publishes the assessed soybean values as differentials to the CBOT soybeans futures settles, often referred to as the "basis". The corresponding futures contract month letter code appears next to the basis value.

Brazil

The Brazil soybean FOB Santos assessments reflect 60,000mt cargoes of Brazil ANEC soybean specification, but with a typical protein level of 34.5%. The FOB Paranagua assessment reflects a smaller parcel size of 5,000 mt. The assessments reflect cargoes loading one calendar month forward. These will roll to the next month on the first publication day after the 15th of the current month.

Platts also assesses a soybeans new crop FOB Paranagua cargo value. The location, quality, and quantity are the same as the SOYBEX/Soybeans Brazil FOB Paranaguá assessment. The FOB Paranagua new crop assessments reflect loading over the months of March, April, May, and June. The FOB Santos new crop assessments reflect loading over the month of March

Platts typically begins publishing new crop values on the first publication day after June 15. As the publication day gets closer to the new crop month, the assessments will transition to be

assessed as the front-month SOYBEX/Soybeans Brazil FOB Paranagua or Santos assessment.

The Brazil crush margin price is based on Platts FOB Paranagua prices, with a 78% soybean meal yield and a 19.5% soybean oil yield line with industry association ABIOVE (Brazilian Association of Vegetable Oil Industries).

China

The CFR North China price assessments reflect Brazil quality soybean specification, as per ANEC 41 and 42 Brazilian soybeans quality clause, with a standard oil content of 18.5% and a standard protein level of 34.5%. The assessments reflect full month shipment, one- and two-months following the date of publication. Rolling the following calendar month on the first publication day after the 15th of each month.

The gross China soybean crush margin is published using a 79% soybean meal yield and a 19% soybean oil yield. The soybean crush calculation is: DCE Soybean Meal x 0.79 + DCE Soybean Oil x 0.19 minus the Handling cost at 50 CNY/mt and minus the cost of imported soybeans (CFR China SOYBEX M1), adding the 3% import tax and the 9% VAT.

USA

The CIF New Orleans soybean assessment reflects standard US Federal Grain Inspection Service grade No. 2 Yellow Soybeans, but with a maximum moisture content of 14%, typical protein level of 34.5% and typical oil content of 18.5%. The assessment reflects typical barge loadings in the current calendar month on the following key US inland waterways -- the Mississippi River, the Illinois River and the Ohio River – for delivery to New Orleans. The FOB cargo soybeans assessment reflects cargoes loading FOB New Orleans one month forward. This rolls to the following calendar month on the first publication day after the 15th of the month.

Since 1909, S&P Global Commodity Insights has been evolving rigorous methodologies for data gathering, mathematical analysis, and specialist judgement to create price assessments that reflect a commodity’s true value. A robust and transparent physical price representing the specific dynamics of regional markets can lead to physical indexation and financially settled derivative instruments. It is a powerful tool that helps customers and other market participants:

— Manage and hedge price risks

— Leverage arbitrage opportunities

— Carry out negotiations more profitably and efficiently

— Make better-informed planning and trading decisions

Brazil is the top producer and exporter of soybeans, accounting for over a third of global prosecution. Brazil also has one of the world's largest soybean crushing capacity and is the second-largest exporter globally for both soybean meal and soybean oil. Brazil also has long-term growth expectations for domestic biodiesel demand.

China has the world's largest soybean crushing capacity with an average volume of over 90 million metric tons of soybeans crushed over the past five years, representing 30% of volume of soybeans crushed globally. China is also the world’s largest importer of soybeans – importing more than 60% of soybeans traded worldwide, on average over the past 5 years.

• Nearby shipments traded
• Sinograin concludes 11th soybean auction

Soybean CFR China price for first-month shipment rose at the Asian close May 16, amid firmer CFR China basis premium.

A Brazilian soybean cargo on a CFR China basis was heard traded higher at 150 cents/bu over July (N) CBOT futures, for June shipment into north China.

July cargoes of Brazilian soybeans were heard traded around 164-165 cents/bu over July (N) CFR China, up 4 cents/bu compared with the previous session.

Sinograin concluded its 11th round of soybean auction for 522,813 mt of soybeans, with an uptake of 10,034 mt of soybeans in Hunan, with production year 2022. The soybeans traded at Yuan 3,870/mt, based on information shared by market sources.

Domestic soybean meal offers for spot delivery May 16 held steady, with offer levels in east China at Yuan 3,390/mt and south China at Yuan 3,430/mt levels, market sources shared.

The soybean meal volume that exchanged hands domestically in China fell to 58,000 mt May 15, all done for spot basis, market sources said.

However, with soybean meal inventories building up, end-users showed little interest to buy forward deliveries and continue hand-to-mouth purchases.

“Spot prices should face some pressure soon if soybean meal inventories continues to build up, I heard crushers are urging end-users to move volumes out from their warehouses,” a Chinese trader said.

“Crushers would probably purchase extra cargoes of June and July shipments for their forward-month demand,” a second Chinese trader said.

Average spot prices of live hogs inched higher to Yuan 15.50/Kg on the day, up Yuan 0.20/Kg on the day, market sources said.

On the Dalian Commodity Exchange, product contract prices fell on the day.

The soybean meal September 2024 contract closed at Yuan 3,550/mt, down Yuan 15/mt, whereas the soybean oil contract price closed at Yuan 7,788/mt, down Yuan 22/mt on the day.

Platts assessed China gross crush margin at $31.70/mt May 16, down $4.49/mt on the day.

Platts is part of S&P Global Commodity Insights.