MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), is pleased to issue the below clarification involving fees charged for deliveries on the Apple Juice Concentrate (AJC) futures contract.
USDA and Testing Fees
The United States Department of Agriculture (USDA) charges sampling and testing fees that total between $800 and $900. A maximum of 40,000 gallons of AJC product from one production run may be tested from one sampling – see the MGEX Rules and Regulations and AJC Manual for further requirements and information. These fees are set by the USDA and are subject to change at any time. Market participants considering making delivery should contact their MGEX approved Regular warehouse to verify additional sampling and testing fees.
Regular Warehouse Storage Fees
Storage charges for AJC product in any Regular warehouse may be charged up to a maximum of $19.00 per month per pallet or bin.
Regular Warehouse Load Out Fee
The Regular warehouse may charge the taker of AJC product a load out fee per negotiable warehouse receipt. A Regular warehouse may charge no more than $5.00 per negotiable warehouse receipt for load out of AJC product.
Regular Warehouse Transfer Fee
The Regular warehouse may charge a transfer free for facilitating the recordkeeping of the change in ownership of AJC product in the Regular warehouse management system. A maximum transfer fee of $50.00 may be charged per negotiable warehouse receipt bya Regular warehouse to the new AJC product owner.
Regular Warehouse Handling Fee
Handling charges are defined as a fee for product arriving at the Regular warehouse and may only be charged to the AJC product owner who places the AJC product into the warehouse. Further, such fees or charges are not shared between market participants involved with an AJC delivery and exclusively charged to the AJC product owner who places the AJC product into the warehouse. For specific information regarding handlingfees please consult with your Regular warehouse.
Other Regular Warehouse Fees
In addition to USDA fees and maximum Regular warehouse fees mentioned above, AJC market participants should be aware that Regular warehouses may have additional fees associated with AJC product. For additional information, market participants should contact their Regular warehouse.
