In a move aimed at enhancing market transparency and supporting informed trade decisions, Platts, a division of S&P Global Commodity Insights, has introduced the Platts Milling Wheat Marker (BSMWM00), a daily spot market price assessment for 12.5% protein milling wheat exports from the Black Sea region. Effective from June 2, this initiative marks the first such pricing mechanism dedicated to the region’s wheat market, widely regarded as the most crucial export corridor globally.
The Platts Milling Wheat Marker is underpinned by the Market-on-Close (MOC) methodology, reflecting the end-of-day value as determined by active participants in the open market. The price assessment incorporates values from three of Platts’ daily Free on Board (FOB) wheat benchmarks: Russian Wheat 12.5% FOB Black Sea (WRBSD00), Wheat FOB Constanta-Varna-Burgas (ACVBA00), and Ukraine Wheat 11.5% FOB Black Sea (WUBSA00). These assessments span key export ports in Russia, Ukraine, Romania, and Bulgaria, offering a consolidated pricing mechanism for assessing regional supply competitiveness.
To ensure equivalency in protein content across the sources, a quality normalization is applied to the Ukrainian 11.5% protein wheat assessment. This adjustment factors in the average monthly price difference between Ukraine’s 11.5% wheat and the most competitive 12.5% wheat from either Russia or the CVB ports. Platts multiplies this average price difference by a fixed coefficient of 140% to arrive at the normalized value. For instance, if April’s average price difference is $5/mt, a $7/mt quality normalization is applied to Ukraine’s daily assessment for May. This adjustment is reviewed monthly based on market feedback and trading patterns to maintain alignment with real-time trade-offs faced by buyers comparing lower and higher protein wheat.
Market Context and Data Infrastructure
The timing of this development aligns with the Black Sea’s increasingly central role in global wheat markets. During the 2023–2024 marketing year (July-June), the region accounted for 38% of global wheat exports, according to data from S&P Global Commodity Insights. Russia alone exported 54.7 million metric tons, Ukraine shipped 18.6 million metric tons, while Romania and Bulgaria jointly contributed 10.5 million metric tons. The region supplies key wheat-importing markets, notably in the Middle East and Africa, where domestic agricultural output is insufficient to meet demand.
“Through the Milling Wheat Marker, we are providing a common reference point to reflect the price of wheat available from the world’s most important export region. This market-first assessment enhances transparency and better facilitates decision making, especially in market environments where buyers may need to pivot to alternative supply sources in response to disruptions on specific routes.”
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Assessment Specifications and Delivery Terms
The Milling Wheat Marker assessment focuses on handysize vessels, with shipments scheduled to load 28–42 days from the date of publication. The quality criteria for 12.5% protein wheat include a minimum test weight of 77 kg/hl, moisture content capped at 14%, wet gluten content of at least 25%, a minimum W number of 180, a Hagberg Falling Number of no less than 250 seconds, and a maximum foreign matter content of 2%. The assessment is quoted in US dollars per metric ton ($/mt).
Daily assessments and monthly averages are published under the symbols Europe Grain Assessments (PAA1440) and Europe Grain Monthly Averages (PAA1612), accessible via Platts Daily Grains and Platts Connect. Additionally, supporting calculations such as Ukraine’s Monthly Average Difference ($/mt MAvg UKRDP03) and the Quality Normalization value ($/mt UKFOB00) are also available on Platts Connect.
A New Tool for Dynamic Wheat Trade Planning
The Platts Milling Wheat Marker enables market participants to navigate the complexities of Black Sea trade dynamics by consolidating disparate pricing inputs into a unified benchmark. By reflecting the most competitive value among major export routes and applying normalization for quality variances, the Marker provides a consistent framework for assessing and planning purchases across a region characterized by logistical diversity and volatile market conditions.
According to the company, since 2014, Platts has evaluated Black Sea grains, and its price assessments have become widely recognized as a trusted source of reference in the physical commodity markets. The launch of the Milling Wheat Marker builds on this legacy, offering an additional layer of price discovery for stakeholders across the global wheat value chain.