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October 24, 2000
Notice Re: Corn Futures Delivery Specifications
A question has been raised regarding the eligibility of StarLinkTM corn for delivery in satisfaction of CBOT®‚ corn futures contracts. StarLink corn is a genetically enhanced variety of corn that is registered to Aventis CropScience.
According to CBOT® Rule 1038.00, Grades, "A contract for the sale of commodities for future delivery shall be performed on the basis of the grades officially promulgated by the Secretary of Agriculture as conforming to United States Standards at the time of making the contract. If no such United States grades shall have been officially promulgated, then such contract shall be performed on the basis of the grades established by the Department of Agriculture of the State of Illinois, or the standards established by the Rules and Regulations of the Association in force at the time of making the contract."
Under CBOT® Rule 1036.00, Grade Differentials, U.S. Nos. 1-3 grades of yellow corn can be delivered in satisfaction of CBOT® Corn futures contracts, subject to the specified differentials for quality. Since these grade standards do not include restrictions on genetically enhanced varieties, StarLinkTM corn, or any other genetically enhanced varieties that meet the U.S. Grade standards designated above, may be delivered in satisfaction of CBOT® futures contracts.
If you have any questions about CBOT® Corn delivery requirements, please contact David Lehman (+1 312/347-3848) in the Market and Product Development Department or Joe Hawrysz (+1 312/341-7750) in the Office of Investigations and Audits.
Paul J. Draths
Vice President and Secretary
