#London #United Kingdom #SP Global #Platts #Wheat Marker

S&P Global Unveils the Platts Milling Wheat Marker

In a significant step forward for the global agricultural market, S&P Global Commodity Insights has launched the Platts Milling Wheat Marker, marking the first daily spot market price assessment specifically designed for milling wheat in the Black Sea region. This landmark product aims to tackle the pressing need for a dependable reference point, offering vital insights for market participants involved in wheat trading.

The introduction of the Platts Milling Wheat Marker is especially relevant considering the critical role the Black Sea region plays in global wheat exports. As per recent data, this area accounted for a staggering 38% of global wheat exports during the marketing year 2023-2024, underscoring its significance for countries heavily reliant on imported wheat, such as those in the Middle East and Africa.

Key Features of the Platts Milling Wheat Marker

The Marker provides a thorough price assessment that includes wheat from essential Black Sea ports and reflects common purchasing practices typical in this vital export area. According to Piero Carello, the Head of Agriculture and Food Pricing at S&P Global, this new assessment enhances market transparency and facilitates better decision-making, especially in environments where buyers may need to adapt to shifts in supply chains.

Notably, the Platts Milling Wheat Marker is anchored in the Platts Market-on-Close price assessment methodology. This approach means that the end-of-day values are determined by active participation in the open markets, providing a clear and realistic reflection of current prices for 12.5% protein milling wheat shipped using handysize vessels.

The Black Sea's Import to Global Wheat Supply

The Black Sea has become an indispensable source for wheat, with Russia being the leading exporter in the region, contributing 54.7 million metric tons. In contrast, Ukraine, Romania, and Bulgaria follow, with shipments amounting to 18.6 million, 10.5 million, and 10.5 million metric tons, respectively. This region is critical in supplying major global wheat buyers, and as such, having a reliable price marker is crucial for making informed purchasing decisions.

Methodology Behind the Marker

The price assessment takes into account several critical factors, including competitive values from relevant wheat assessments from multiple countries: FOB Russia for 12.5% protein wheat, FOB Ukraine for 11.5% protein wheat, and the Constanta-Varna-Burgas assessment in Romania and Bulgaria. Notably, a quality normalization process is applied to the Ukraine assessment to ensure comparability across different protein levels, enabling a more accurate representation of market dynamics.

As a long-standing leader in price reporting, Platts adds substantial value to agricultural markets through consistent and recognized benchmark price assessments since it began evaluating Black Sea grains in 2014. This continuous effort to enhance the trading environment has established Platts as a trusted source across the commodity landscape.

Accessible Data and Additional Insights

For users looking for ongoing updates, the Platts Milling Wheat Marker assessments and monthly averages will be accessible through Europe Grain Assessments and Europe Grain Monthly Averages, alongside various additional calculations via Platts Connect. This iterative process ensures that buyers have access to timely and relevant information, supporting strategic decision-making in a landscape characterized by volatility and change.

Conclusion

In conclusion, the launch of the Platts Milling Wheat Marker by S&P Global reflects a vital advancement in commodity trading. By providing a transparent price reference for milling wheat in the Black Sea region, the Marker not only supports those engaged in immediate trade but also aids in long-term strategic planning for marketers navigating the complex agricultural economy. As the demand for wheat continues to grow globally, innovations like these will be essential for facilitating efficient market operations.

For more detailed insights and continuous updates, users can utilize the Platts Global Grains and Oilseeds Specifications Guide.