Price Assessment Methodology

Price Assessment Methodology

PRICE QUOTES DO NOT REFLECT ACTUAL TRANSACTIONS, BUT REPRESENT CURRENT MARKET CONDITIONS AS PERCEIVED BY SELECTED BUYERS AND SELLERS.

Spot Market Insights provides commodity 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, and geographic location.

The prices quoted by Spot Market Insights 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 or terminal. Unless otherwise referenced, all domestic U.S. prices are on a short ton, FOB basis. International prices are on a metric ton basis.

This Price Assessment Methodology document serves to clarify how Spot Market Insights commodity market reporting is developed. Any questions regarding the methodology can be directed to Daniel Houder, President and Publisher, 24 Railroad Street, Keene, NH, 03431-3744, USA.

Ethical Standards and Corrections

Spot Market Insights 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.

Spot Market Insights will not make retroactive changes to reported price levels or market insight after publication based on information received after publication. Spot Market Insights 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

Spot Market Insights’ commodity price assessments are developed through information gathered from market participants across the commodity value-chain. These market participants can include 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.

Spot Market Insights analysts/reporters actively survey sources for market data and will utilize market insight from any source they accept as credible. Spot Market Insights 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 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.

Spot Market Insights 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 commodity industry. The assessment methods, mechanisms and market coverage areas are reviewed both internally and with professionals across the greater commodity value-chain to ensure Spot Market Insights is meeting expectations.

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), Spot Market Insights analysts assess market prices based on their objective judgment that utilizes all market information available.

In these scenarios, Spot Market Insights 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

Spot Market Insights 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 commodity industry. The assessment methods, mechanisms and market coverage areas are reviewed both internally and with professionals across the greater commodity value-chain to ensure Spot Market Insights is meeting expectations.

Limited Warranty

Kennedy Information LLC, the parent company of Spot Market Insights, represents and warrants that it has the right to make the Product(s) available to Customers. ALL PRODUCTS ARE PROVIDED TO CUSTOMER “AS IS.” KENNEDY AND ITS SUPPLIERS EXPRESSLY DISCLAIM ALL WARRANTIES, INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, AND DISCLAIM ALL RESPONSIBILITY FOR ANY LOSS OR CLAIM OF ANY KIND RELATING IN ANY WAY TO THE USE OF THE PRODUCT(S) AND ANY CONTENT CONTAINED THEREIN, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. CUSTOMERS AGREE TO HOLD KENNEDY AND ITS SUPPLIERS HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS AND LOSSES ARISING OUT OF OR IN ANY WAY RELATED TO ITS USE OF THE PRODUCT(S) OR ANY CONTENT CONTAINED THEREIN.

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