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 and sellers. Price assessments are 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 domestic U.S. prices are on a short ton, FOB basis. International prices are on a metric ton basis.
Ethical Standards and Corrections
Green Markets analyst/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.
Green Markets will not make retroactive changes to reported price levels or market insight after publication based on information received after publication. Green Markets will on rare occasions make and 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 fertilizer producers, traders, brokers, dealers, agricultural producers and other consumers 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: tenure as a source; availability and speed with which inquiries from analysts/reporters are answered; timeliness; depth and 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 analyst 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 assessments 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 analyst/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, and 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.
Inactive Market Price Assessments
In the instance of non-liquid or inactive markets in which no transactional information exists (usually occurring on a seasonal basis), Green Markets analysts assess market prices based on their objective judgment that utilizes all market information available.
In these scenarios, Green Markets analysts base their assessments on a variety of market influencing Information including supply and demand balance, bids/offers, tenders and other inputs.
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 is meeting expectations.
Disclaimer of Warranty
All information has been obtained by Green Markets from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, Green Markets or others, Green Markets does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.
Questions regarding the methodology or compliance thereto should be directed to:
attn: Daniel Houder, Managing Director
P.O. Box 190
Sullivan, NH 03445