[Federal Register Volume 59, Number 79 (Monday, April 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-9879]
[[Page Unknown]]
[Federal Register: April 25, 1994]
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COMMODITY FUTURES TRADING COMMISSION
Citrus Associates of the New York Cotton Exchange: Proposed
Amendments Relating to the Locational Price Differentials for the
Frozen Concentrated Orange Juice Futures Contract
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice of proposed contract market rule change.
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SUMMARY: The Citrus Associates of the New York Cotton Exchange (CANYCE)
has submitted proposed amendments to its frozen concentrated orange
juice (FCOJ) futures contract. The proposed amendments will reduce the
contract's existing discount for futures delivery at the California
delivery points and eliminate the discount applicable to futures
delivery at the contract's Northeastern U.S. delivery points.
In accordance with section 5a(a)(12) of the Commodity Exchange Act
and acting pursuant to the authority delegated by Commission Regulation
140.96, the Acting Director of the Division of Economic Analysis
(Division) of the Commodity Futures Trading Commission (Commission) has
determined, on behalf of the Commission, that the proposed amendments
are of major economic significance. On behalf of the Commission, the
Division is requesting comment on this proposal.
DATES: Comments must be received on or before May 25, 1994.
ADDRESSES: Interested persons should submit their views and comments to
Jean A. Webb, Secretary, Commodity Futures Trading Commission, 2033 K
Street NW., Washington, DC 20581. Reference should be made to the
proposed changes in locational price differentials for the CANYCE
frozen concentrated orange juice futures contract.
FOR FURTHER INFORMATION CONTACT: Frederick V. Linse, Division of
Economic Analysis, Commodity Futures Trading Commission, 2033 K Street
NW., Washington, DC 20581, telephone (202) 254-7303.
SUPPLEMENTARY INFORMATION: The FCOJ futures contract currently calls
for the delivery of frozen concentrated orange juice for manufacturing
meeting the standards for U.S. Grade A, with a Brix value of not less
than 62.5 degrees.\1\ The contract unit currently is 15,000 pounds of
orange solids. The contract's existing terms also specify that delivery
of FCOJ may be made either by the transfer of a warehouse receipt
representing FCOJ stored in 55-gallon steel drums in an CANYCE-licensed
warehouse, or by the transfer of a shipping certificate representing
FCOJ stored in an CANYCE-licensed tank storage facility.
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\1\Brix is a measure of the sugar content of oranges expressed
as a percentage of the weight of orange solids.
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The futures contract's existing terms provide that delivery may be
made at par at any CANYCE-approved delivery facility located in
specified counties of the state of Florida. In addition, the contract
currently provides that delivery may be made at CANYCE-approved
delivery facilities located in Wilmington, Delaware; Port Elizabeth,
New Jersey; and Newark, New Jersey at a discount of three cents per
pound of orange solids, and in specified counties in the state of
California at a discount of thirteen cents per pound of orange
solids.\2\
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\2\The futures contract currently specifies that delivery may be
made at CANYCE-licensed delivery facilities located in the following
California counties: Fresno, Kern, Los Angeles, Monterey, Orange,
Riverside, San Bernardino, Santa Barbara, Santa Cruz, Tulare and
Ventura.
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The proposed amendments will modify the locational price
differentials for delivery at the above-noted nonpar delivery
locations. Under the proposed amendments, the existing discount of
three cents per pound for delivery at Wilmington, Delaware; Port
Elizabeth, New Jersey; and Newark, New Jersey will be eliminated, with
FCOJ at these locations henceforth being deliverable at par. The
proposed amendments also will reduce to 10 cents from 13 cents per
pound the discount for delivery in the specified counties of the state
of California.
The CANYCE intends to apply the proposed amendments to all
currently listed futures contract months beginning with the May 1995
contract month and to all newly listed contract months following its
receipt of notice of Commission approval. In this respect, the CANYCE,
prior to listing the May 1995 and July 1995 contract months on April
18, 1994, issued a notice to all members and member firms of the CANYCE
advising these entities that the proposed amendments will be applicable
to the May and July 1995 contract months and to all subsequently listed
contract months, subject to Commission approval of the proposed
amendments.
In support of the proposed amendments, the CANYCE stated that
``[t]he reasons for making the changes in the locational [price
differentials] are:
(1) The normal differential of basis trades for the northeast
ranges from -5 to +10 putting a differential of zero within the normal
range; and
(2) The cash market differential between California and Florida
ranges from -33 to +16.5 putting a differential of -10 within the
normal range.''
The Commission is requesting comments specifically with respect to
the extent to which the proposed locational price differentials fall
within the range of commonly observed commercial price differences
between the contract's delivery points for FCOJ for manufacturing of
the same quality.
Copies of the proposed amendments will be available for inspection
at the Office of the Secretariat, Commodity Futures Trading Commission,
at the above address. Copies of the amended terms and conditions can be
obtained through the Office of the Secretariat by mail at the same
address or by telephone at (202) 254-6314.
The materials submitted by the CANYCE in support of the proposed
amendments may be available upon request pursuant to the Freedom of
Information Act (5 U.S.C. 552) and the Commission's regulations
thereunder (17 CFR part 145 (1987)). Requests for copies of such
materials should be made to the FOI, Privacy and Sunshine Act
Compliance Staff of the Office of the Secretariat at the above address
in accordance with CFR 145.7 and 145.8.
Any person interested in submitting written data, views, or
arguments on the proposed amendments should send such comments to Jean
A. Webb, Secretary, Commodity Futures Trading Commission, at the above
address by the specified date.
Issued in Washington, DC on April 19, 1994.
Blake Imel,
Acting Director, Division of Economic Analysis.
[FR Doc. 94-9879 Filed 4-22-94; 8:45 am]
BILLING CODE 6351-01-P