S&P Global Launches New Milling Wheat Price Benchmark
S&P Global Introduces the Milling Wheat Marker
The introduction of the Platts Milling Wheat Marker by S&P Global Commodity Insights marks a significant milestone in the assessment of wheat prices. This innovative daily price benchmark encompasses wheat sourced from essential Black Sea ports, delivering a comprehensive price assessment that mirrors the buying practices in one of the most crucial export regions globally.
Enhancing Market Transparency
The target of the Milling Wheat Marker is to establish a reliable reference point for clients engaged in planning and purchasing wheat. It aims to align with the diversity of supply routes available in the market, thereby assisting traders in making informed decisions in an evolving landscape.
Key Insights from S&P Global
Piero Carello, Head of Agriculture and Food Pricing at S&P Global, emphasizes that this marker serves as a common reference, capturing the pricing dynamics of wheat from this globally vital export hub. He notes, "This market-first assessment enhances transparency and better facilitates decision-making, especially for buyers who may need to switch to alternative supply sources amid disruptions."
The Value of the Platts Milling Wheat Marker
Grounded in Platts’ trusted Market-on-Close price assessment approach, the Milling Wheat Marker reflects the end-of-day value of 12.5% protein milling wheat transported on handy-sized vessels. This methodology takes into account competitive values derived from different assessments, including Free on Board (FOB) values from Russia and Ukraine, as well as from key ports in Romania and Bulgaria. This careful assessment ensures a reliable estimate of the current market landscape.
Black Sea's Role in Global Agriculture
Notably, the Black Sea region is pivotal in the global wheat trade, contributing approximately 38% of global wheat exports. Recent assessments indicate that exporters from this region shipped a total of 83.8 million metric tons of wheat, with significant contributions from Russia and Ukraine. The demand from major global buyers, especially in regions where local supply is insufficient, exemplifies the importance of this market.
Reliable Price Reporting
As a leading price reporting agency, S&P Global Commodity Insights has provided crucial price assessments for the physical commodity markets since 2014. Their expertise in evaluating Black Sea grains has established them as a trusted reference point for producers and traders alike. The daily assessments of the Platts Milling Wheat Marker will be made available through various platforms, including Europe Grain Assessments and Platts Daily Grains.
Accessing Market Insights
For subscribers wishing to delve deeper into the pricing methodologies and insights, additional averages and differences specific to Ukraine can be examined through Platts Connect, empowering clients to remain informed about market fluctuations and trends.
About S&P Global Commodity Insights
S&P Global Commodity Insights plays a crucial role in providing a global perspective on energy and commodities. With a broad range of offerings, the company helps clients navigate complex markets, supporting them in making informed, strategic decisions. Their products and services are vital in helping organizations adapt to changes in the economic landscape, enhancing their long-term value creation. As part of S&P Global (NYSE: SPGI), their influence extends across various sectors, from energy to agriculture.
Frequently Asked Questions
What is the Platts Milling Wheat Marker?
The Platts Milling Wheat Marker is a daily spot market price assessment for milling wheat from the Black Sea region, designed to serve as a transparent benchmark.
How does the Milling Wheat Marker benefit traders?
It provides traders with a reliable reference point for purchasing decisions, enhancing transparency and assisting in planning based on diverse supply routes.
What methodology is used for this price assessment?
The marker uses the Market-on-Close methodology, reflecting competitive values from key wheat assessments in the Black Sea region.
Why is the Black Sea significant in the wheat market?
The Black Sea region accounts for a substantial portion of global wheat exports, making it essential for international wheat buyers, particularly in regions with high demand.
How can I access data from the Platts Milling Wheat Marker?
Daily assessments and additional insights on the marker can be accessed through platforms such as Platts Daily Grains and Platts Connect.
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