CFTC Seeks Public Comment on CME Group Wheat Futures Contract; Comments Due by Oct. 3

September 8, 2008 07:00 PM
 
AgWeb.com Editors

The Commodity Futures Trading Commission (CFTC) is requesting public comment on proposed amendments submitted by the CME Group for the Chicago wheat futures contract.

The CME Group's proposed amendments add new delivery territories, including shuttle train loading facilities in a 12-county area of Northwest Ohio at a 20 cent per bushel discount, barge loading facilities on the Ohio River from Cincinnati to the Mississippi River at par, and barge loading facilities on the Mississippi River below St. Louis to Memphis at a 20 cent per bushel premium.

The proposed amendments establish a seasonal storage premium charge of eight cents per bushel per month from July through November. The storage premium charge will remain five cents per bushel per month at all other times, according to the proposal.

The amendments also reduce the vomitoxin level for par delivery from three parts per million (ppm) to two ppm. The amendments adding delivery territories and introducing a higher seasonal premium rate will become effective for the July 2009 contract, and the new vomitoxin specification will become effective for the September 2011 contract.

The proposed changes, according to CME Group, are intended to address concerns raised over the past two years by market participants about the wheat futures contract - especially the lack of cash/futures convergence at contract expiration.

The CFTC requests all comments to be submitted on or before Oct. 3, 2008. Comments may be submitted electronically to secretary@cftc.gov. All comments will be posted on the CFTC's website.

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CME Group Proposes Changes to Wheat Contract to Improve Convergence

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