Green Markets Fertilizer Price and Market Assessment Methodology

This statement serves to clarify how Green Markets fertilizer market price reporting is developed.

Green Markets provides fertilizer price and market sentiment assessments that indicate reliable market value and conditions. These assessments are objective and adhere to industry norms with respect to volume standards, delivery method, currency, nutrient units and geographic location.

The prices quoted by Green Markets do not necessarily reflect actual transactions, but current market rates as perceived by buyers, sellers and Green Markets analysts. Fertilizer price assessments are typically based on large transactions involving truckloads or larger volumes.

All prices are net of discounts for volume, cash, or prompt payment, if such are offered. Prices listed on an FOB basis are at the producer’s plant gate, terminal, or pipeline point. Unless otherwise referenced, all U.S. prices are on a short ton basis. Non-U.S. prices are on a metric ton basis.

The Green Markets price assessments are published on a weekly basis and made available to clients of Bloomberg LP.

Ethical Standards

Green Markets analysts/reporters and all related staff follow high ethical standards to protect the objectivity and impartiality of the price and market assessments. They are restricted against any activities that may compromise objectivity, including trading in covered company stocks or commodities or for accepting any remuneration or favors from covered companies.

Corrections

Green Markets will not make retroactive changes to reported price levels or market insight after publication based on information received post publication. Green Markets will on rare occasions make and subsequently communicate price assessment corrections after the publication date in the case of methodological, technical, or clerical error.

Market Sources and Related Survey

Green Markets fertilizer price assessments are developed through information gathered from market participants across the fertilizer value-chain. These market participants can include producers, consumers, traders, brokers, distributors, dealers, and other intermediaries in the trade of the covered commodities.

Sources of market information are tested on an on-going basis with respect to their historical performance. The respective source credibility is a function of several attributes: industry experience and role; tenure as a source; availability and speed with which inquiries from analysts/reporters are answered; timeliness; and depth/breadth of the data provided.

Green Markets analysts/reporters actively survey sources for market data and will utilize market insight from any source they accept as credible. Green Markets constantly strives to increase the number of market participants it works with to gather market data, and its analysts are responsible for managing their respective market connections. The volume of available market data points fluctuates based on market conditions, which are most often impacted by seasonality.

In creating a price assessment that represents the prevailing market, transactional price levels are typically deemed more relevant than bids/offers. Bids/offers data is typically deemed more relevant than other market data. The analyst/reporter must adjust the respective methodology used in a particular market to ensure the assimilated market insight creates objective and informed price assessment.

Data Relevance, Analysis and Scrutinization

It is the analysts/reporters’ role to aggregate, and analyze all data submitted as part of the price assessment process. These data elements can include actual transaction references, bids/offers, product specifications, transaction sizes, buyers/sellers, spreads between commodities, grades and/or geographies and any other relevant information that contributes to the assessment of the prevailing market price.

The analyst/reporter provides a significant level of scrutinization to ensure the various data elements accurately reflect the respective market. Areas to be scrutinized include: transactions that are refuted by other market participants as extraordinary; product grade/quality/specification variance; multiparty transactions; transactions impacted by extraneous factors such as weather, transportation; interdependent or affiliate transactions; price levels that deviate from expectations or norms; atypical volume levels. Analysts may also consider and account for regional variations in price to determine the tradeable value of a commodity using credible sources on consumption data, input from market participants, his or her objective judgement and any other credible market information.

Based on this scrutinization exercise, the analyst/reporter may at his/her discretion disallow the inclusion of pricing information that is believed to be an outlier and not representative of current market prices.

Pricing Data Source Credibility and Documentation

The development of a competent source network is key to developing successful price reporting. Green Markets’ analysts/reporters’ source networks are developed by directly contacting market participants.

It is the responsibility of the respective individual analyst/reporter to assess the credibility of any source prior to including the source’s information in price assessments. Sources are vetted following industry norms with respect to their industry experience, role, company position in the value chain, level of market participation, willingness to participate and overall reliability.

Any potential or existing source that is determined to have knowingly provided inaccurate information will be immediately eliminated from the source network.

Inactive Market Price Assessments

In the instance of non-liquid, inactive, or markets in which no transactional information exists for whatever reason, Green Markets analysts assess market prices based on their objective judgment, utilizing all market information available.

In these scenarios, Green Markets analysts base their assessments on a variety of market-influencing information including the previous price assessments, adjacent or related assessments, supply and demand balance, bids/offers, tenders and other inputs.

All Green Markets’ assessments, including those originating from non-liquid or inactive markets, are approved via a process involving a secondary reviewer.

Price Assessment Ranges

Green Markets assesses the range in which repeatable trade occurred or could have occurred in the absence of actual transactions, during the reporting period, with an emphasis on prices in effect in the latter, or more recent, point in the reporting period.

Consistency in the Assessment Process

Green Markets analysts/reporters seek to create a repeatable, consistent application of the methodology and processes to ensure price assessments are reliable and valuable to the greater fertilizer industry.

The assessment methods, mechanisms and market coverage areas are reviewed both internally and with professionals across the greater fertilizer value chain to ensure Green Markets meets expectations.

Oversight of Price Assessments and Reporting

Green Markets will indicate a Price Approver that will oversee the final approval of any Green Markets price assessment. The Price Approver will provide objective analysis and approval of the respective prices assessment, separate from the Price Reporter.

This separation between price assessment reporting and price assessment approval will be monitored on an ongoing basis to ensure compliance.

This Price and Market Assessment Methodology is reviewed on an annual basis, and changes may occur on-going on an as-needed basis.

Last Updated: June 20, 2023