Global Wheat Price Assessments

Black Sea & Europe

Platts Black Sea grain price 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 gathers price data from a wide segment of the market, including wheat producers, traders, brokers, and consumers.

Data is normalized to reflect the tradeable value of the commodity on a given day, for specified order quantities, commodity specifications and standard timing and payment terms

Platts may also refer to other ports or prices in relevant destinations/origins and will use prevailing spot freight rates and adjustments to normalize to basis location.

Black Sea wheat prices are assessed in US dollars per ton and reflect the tradable and repeatable spot market value at 1630 London time.

For the complete specifications of Platts wheat assessments please refer to the latest Platts Global Grains and oilseeds specification guide.

Australia

• APW FOB Australia

Platts Australia wheat price assessments are based on robust and transparent market data including seaborne milling wheat trades, bids and offers on a FOB Australia or CFR basis.

Daily market engagement encompasses market participants in a broad geographical area, including Australia, Southeast and Northern Asia, the Indian subcontinent and the Middle East, and focuses on active physical sellers and buyers of milling wheat, trading firms, flour millers and government purchasing units.

Data is normalized to reflect the tradeable value of the commodity on a given day, for specified order quantities, commodity specifications and standard timing and payment terms.

The assessment takes into consideration FOB price points across Australia, normalized to Kwinana port with prevailing freight differentials. It also encompasses trade data from across Asia, with transactions agreed on a CFR basis normalized back to FOB using prevailing spot freight rates.

The assessment's volume, location, and timing, reflect typical Australian wheat exports, normalized to 30,000 mt loading in Kwinana, Western Australia, in 60-90 days. It is assessed in US dollars per metric ton at a daily timestamp of 1630 Singapore time.

• ASW FOB Australia

The assessment's volume, location, and timing would reflect typical Grain Trade Australia standard for ASW1 wheat exports, normalized to 30,000 mt loadings from Kwinana, Western Australia, for a cargo loading 60-90 days forward from the date of publication.

As per Platts methodology, the assessment would be made using transactional information collected daily, including transactions, bids and offers up to 4:30 pm Singapore time (0830 GMT).

In the absence of representative FOB Australia price information, Platts may also normalize bids, offers, or trades of atypical ASW wheat cargo sizes from other locations.

For the complete specifications of Platts wheat assessments please refer to the latest Platts Global Grains and oilseeds specification guide.

Global wheat purchasing is on the rise due to growing populations, increasing wealth and shifting patterns of consumption, the supply and demand balance in the world is likely to continue to tighten.

Platts is able to capitalize on its extensive commodity market experience to develop price reporting aimed at providing transparency in an industry and regions which have not typically been subject to such oversight. The provision of independent prices helps in managing risk along the entire value chain, powering a new generation of financial instruments and delivering protection in uncertain times.

The Black Sea region has grown in importance from importer of grains 30 years ago to become the top wheat exporter in the world with further potential of increase in wheat production. Russia and Ukraine are expected to account for 30% of the world wheat exports in 2021/22 marketing year (July 1-June 30) according to the US Department of Agriculture. The Black sea region supplies grains to the Middle East, Africa, Mediterranean countries, South East Asia. At the time of high volatility in the commodities markets, grains in particular, the importance and the role of price reporting and the publication of independently assessed grains prices could carry great significance and bring more transparency to the market.

Australia is a traditional supplier of wheat in Asia and the Middle East with about 65-75% of its production exported each year. Western Australia (WA) is the largest wheat producing state in Australia, accounting for 35-60% of total production. 90% of WA wheat is exported, which accounts for 40% of total Australia wheat exports. Australian wheat is particularly sought after for its unique attributes in noodle making, with more than 30% of its exports used to make various types of noodles in Asia.

A robust and transparent physical price representing the specific dynamics of regional markets and which leads to physical indexation and financially settled derivative instruments 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