CBOT Approved Revisions to Corn, Soybean Futures

The Chicago Board of Trade Board of Directors and Commodity Futures Trading Commission (CFTC) have approved the following changes in regulations regarding corn and soybean futures:

Increase the maximum storage rate (premium charge) to $0.0015 per bushel per day;
Decrease the maximum number of shipping certificates allowed to be issued to 20 times registered daily rate of load-out;
Continue storage charges through load-out;
Require the maker to include barge stevedoring in the 4 cent/bushel fob charge;
Require the taker to reimburse the maker for expenses if loading orders are canceled;
Allow initial deliveries in any quantities; and
Require shippers to quote a price at which they will either buy shipping certificates from the holder or sell grain to the holder to make up the balance for load-out in the event a shipping station has less than eleven shipping certificates outstanding.

The revisions, as summarized in the accompanying notice, will be effective on November 1, 2001 for the November 2001 and subsequent Corn and Soybean futures contracts.

The changes will apply to all shipping certificates that are outstanding on November 1, 2001. Shipping certificates issued prior to November 1, 2001 or shipping certificates that are returned to the shipper, or his agent, for reissuance prior to November 1, 2001 may indicate two storage rates, one for the period through October 31, 2001 and another commencing on November 1, 2001.

If you have any questions, please contact David Lehman (+1 312-347-3848) or Eugene Kunda (+1 312-347-5528) in the Market and Product Development Department.