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NYBOT Announces Update On Review Of Certified Coffee Stocks In New Orleans

Date 07/04/2006

The New York Board of Trade® (NYBOT®), the world’s leading “soft” commodity exchange, announced today that at a recent meeting, the Board of Governors considered several recommendations from its Coffee Committee concerning (1) coffee held in New Orleans within the 3 stores that continue to be subject to suspension of their licenses due to damage from Hurricane Katrina; and (2) the status of certified coffee that has been identified as requiring reconditioning and that was held in a store that suffered flooding as a result of Hurricane Katrina.

CERTIFIED COFFEE IN NEW ORLEANS STORES WHOSE LICENSES ARE CURRENTLY SUSPENDED:

The Board previously adopted procedures to be followed in assessing the deliverable status of certified coffee stored in any of the 3 New Orleans stores whose licenses remained suspended--Dupuy Storage Stores 2, 10 and 18—in the event that the license of any such store was not reinstated by April 15, 2006. These procedures called for the coffee to be flagged in eCOPS® as undeliverable, but permitted the owner, at his own expense, to have the coffee examined by Exchange graders for evidence of off odor or mold, within 60 days of flagging. Lots that showed no sign of off odor or mold in such inspection would have their deliverable status restored, so long as they were either moved to another store that had a license, or if the store in which they are held has had its license reinstated.

The Board is now clarifying that any coffee which is in a store whose license is not restored by the April 15th deadline, which passes such inspection as referenced above, and which the owner desires to move to a licensed store, must be moved within thirty (30) days of the date the Exchange notifies the owner that the deliverable status of the coffee has been restored.

As a reminder, any lots so inspected which show off odor or mold will be decertified, and any lots which are not tested within 60 days of flagging in eCOPS, will be decertified and permanently removed from eCOPS.

COFFEE REQUIRING RECONDITIONING:

The Coffee Committee has also considered procedures to address the deliverable status of coffee bags that have been identified by the warehouse as requiring reconditioning and which were held in a store that sustained flooding during the Hurricane. These procedures apply only if, and when, the license of any such store has been reinstated:

  • Owners of coffee bags that have been identified by the warehouse as requiring reconditioning must authorize reconditioning and give instructions to have such coffee sampled and graded at the owner’s expense, by May 15, 2006, or such bags will be decertified.

  • If the owner so requests sampling and grading, then, upon completion of reconditioning the bags, samples will be drawn by an Exchange Licensed Sampler and sent to New York.

  • Samples will be reviewed by Exchange Licensed Graders for the presence of off odors and/or mold.

  • If the samples show no sign of off odor or mold, the reconditioned bags from which they were drawn will immediately become deliverable.

  • If the samples show some off odor or mold, the reconditioned bags from which they were drawn will be immediately decertified.

RESTORATION OF LICENSE TO DUPUY STORE 18 AND OF DELIVERABLE STATUS TO CERTIFIED COFFEE STORED THEREIN

Additionally, under the procedures and standards announced on February 10, 2006 for assessing the deliverable status of certified coffee stored in any store whose license was suspended as of that date, the Board also took action to restore the deliverable status of certified coffee stored in Dupuy Store 18. This action followed the restoration of the license of this store by the Warehouse and Licensing Committee based upon its determination that any and all damage to the facility of the store has been repaired and the store meets Exchange requirements for a licensed facility.

With these actions, the moratorium on the issuance of delivery notices against certified stocks in Dupuy Store 18 is lifted, the prohibition on certification of new coffee in the store is terminated, and the prohibition on licensed stores accepting coffee that had been held in this store during the period from August 27th to date is terminated, effective immediately.

The New York Board of Trade (NYBOT) is New York’s original futures exchange, where the world trades food, fiber and financial products. For well over a century, the New York Board of Trade has provided reliability, integrity and security in a global marketplace for cocoa, coffee, cotton, ethanol, orange juice, wood pulp and sugar, as well as currency and index futures and options. Information about the New York Board of Trade can be found at www.nybot.com and www.nybotlive.com. To learn more about New York Board of Trade Futures & Options for Kids, the Exchange’s non-profit group, please go to www.futuresandoptionsforkids.org.