S&P Global Commodity Insights' Fertecon Ammonia Benchmarks Selected As Basis For ICE Futures Contract

Rhea-AI Summary

ICE Selects Four Platts Price Assessments for Derivatives Contracts Settlement - Intercontinental Exchange, Inc. (NYSE:ICE) has chosen the Platts Fertecon spot physical price assessment of ammonia as the basis for a new ammonia futures contract, emphasizing the importance of ammonia in the world's agriculture and energy transition. The new ICE ammonia futures contract will financially settle against the Platts Fertecon weekly price of anhydrous ammonia as delivered to Northwest Europe. The trading and clearing of the new ICE contracts will begin Monday, December 11, 2023, with a total of more than 750 ICE contracts settled and cleared against physical market price assessments published by Platts and Fertecon of S&P Global Commodity Insights. ICE will also be launching spread derivatives based on three Platts spot physical price differentials assessments for Fuel Oil and Oil.

Positive

• ICE's selection of Platts Fertecon spot physical price assessment of ammonia for a new futures contract highlights the importance of ammonia in the world's agriculture and energy transition.
• The new ICE ammonia futures contract will financially settle against the Platts Fertecon weekly price of anhydrous ammonia as delivered to Northwest Europe.
• The total number of ICE contracts settled and cleared against physical market price assessments published by Platts and Fertecon of S&P Global Commodity Insights is more than 750.

Negative

• None.

In All, ICE Selects Four Platts Price Assessments for Derivatives Contracts Settlement

NEW YORK, Nov. 9, 2023 /PRNewswire/ -- The Platts Fertecon spot physical price assessment of ammonia delivered to Northwest Europe on a cost and freight basis (CFR NWE Ammonia) was selected by Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, as the basis for a new ammonia futures contract. Platts and Fertecon are part of S&P Global Commodity Insights, the leading independent provider of information, analysis, data and benchmark prices for commodities, energy and energy transition markets.

 Ammonia is key to the production of fertilizer to ensure the world's agriculture food sources, but it is also key to the world's energy transition, being one of the key transport vectors for moving large amounts of low-carbon hydrogen to import centers such as that of Northwest Europe and Far East Asia.

The new ICE ammonia futures contract will financially settle against the Platts Fertecon weekly price of anhydrous ammonia (of 82% nitrogen and transported as a liquid under pressure at approximately -33°Celcius) as delivered duty-paid or duty-free on a cost and freight basis to Northwest Europe.

"We welcome the confidence ICE places in Platts and Fertecon and the value it places on the transparency we bring to the marketplace through our price assessments," said Robert Beaman, head of fertilizer pricing, S&P Global Commodity Insights.

Platts price assessments for well over a century have been chosen by industry as benchmarks in the spot physical markets. Fertecon is well known for half a century for its benchmark status in fertilizer-based price assessments such as ammonia.

According to ICE, trading and clearing of the new ICE contracts will begin Monday, December 11, 2023, subject to satisfactory conclusion of applicable regulatory processes. With this launch, the total number of ICE contracts settled and cleared against physical market price assessments published by Platts and Fertecon of S&P Global Commodity Insights is more than 750. See this S&P Global Commodity Insights article on the ICE launch. 

In addition to the futures contract based on the Platts Fertecon Ammonia price assessments, ICE will also be launching spread derivatives that are based on three Platts spot physical price differentials assessments for Fuel Oil and Oil:  

• Fuel Oil Differential - Middle East Fuel Oil 380 CST FOB Arab Gulf (Platts) vs Fuel Oil 380 CST Singapore (Platts) Balmo Future
• MHS Fuel Oil Crack - Middle East Fuel Oil 380 CST FOB Arab Gulf (Platts) vs Brent 1st Line Balmo Future (in MT)
• MHT Fuel Oil Crack - Middle East Fuel Oil 180 CST FOB Arab Gulf (Platts) vs Brent 1st Line Balmo Future (in MT)

The Platts and Platts Fertecon price assessments, licensed by ICE, appear in S&P Global Commodity Insights publications and services, including Ammonia Market Report.

For details of the methodology that underpins the Platts and Fertecon price assessment processes, visit this link.

*S&P Global Commodity Insights does not sponsor, endorse, promote or sell ICE contracts.

Media Contacts:  
Americas: Kathleen Tanzy + 1 917-331-4607, kathleen.tanzy@spglobal.com 
EMEA: Paul Sandell + 44 (0)7816 180039, paul.sandell@spglobal.com  
Asia: Melissa Tan + 65-6597-6241, melissa.tan@spglobal.com   

About S&P Global Commodity Insights 
At S&P Global Commodity Insights, our complete view of global energy and commodity markets enables our customers to make decisions with conviction and create long-term, sustainable value.  

We're a trusted connector that brings together thought leaders, market participants, governments, and regulators and we create solutions that lead to progress. Vital to navigating commodity markets, our coverage includes oil and gas, power, chemicals, metals, agriculture, shipping and energy transition. Platts^® products and services, including leading benchmark price assessments in the physical commodity markets, are offered through S&P Global Commodity Insights. S&P Global Commodity Insights maintains clear structural and operational separation between its price assessment activities and the other activities carried out by S&P Global Commodity Insights and the other business divisions of S&P Global.

S&P Global Commodity Insights is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information visit https://www.spglobal.com/commodityinsights. 

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SOURCE S&P Global Commodity Insights

FAQ

What is the basis for the new ammonia futures contract chosen by ICE?

Intercontinental Exchange, Inc. (NYSE:ICE) has chosen the Platts Fertecon spot physical price assessment of ammonia as the basis for a new ammonia futures contract.

When will the trading and clearing of the new ICE contracts begin?

The trading and clearing of the new ICE contracts will begin Monday, December 11, 2023.

How many ICE contracts are settled and cleared against physical market price assessments published by Platts and Fertecon of S&P Global Commodity Insights?

The total number of ICE contracts settled and cleared against physical market price assessments published by Platts and Fertecon of S&P Global Commodity Insights is more than 750.