Defining Commodity Grades for Market Pricing

This document is a technical report that outlines the process of defining commodity grades as part of S&P Global Commodity Insights' efforts to enhance data quality and pricing accuracy in the commodities market. It begins by explaining the significance of benchmark price assessments for physical commodities and the factors influencing commodity pricing, particularly focusing on characteristics like sulfur concentration and API Gravity. The report details the challenges faced in establishing a clear definition of 'commodity grade' and describes the collaboration with Semantic Arts to analyze and clarify this concept. The methodology employed includes learning from subject matter experts and developing a formal definition using semantic standards. Additionally, the report presents a validation solution utilizing SPARQL and SHACL to ensure that commodity grades meet specified market characteristics. The framework developed is applicable across all commodities, promoting data interoperability and enhancing operational efficiency while reducing ambiguity in definitions.