[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: 94-9880]


[[Page Unknown]]

[Federal Register: April 25, 1994]


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COMMODITY FUTURES TRADING COMMISSION

 

Coffee, Sugar & Cocoa Exchange: Proposed Amendment Relating to 
Delivery Points for the Coffee ``C'' Futures Contract

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of proposed contract rule change.

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SUMMARY: The Coffee, Sugar & Cocoa Exchange (``CSCE'') has submitted a 
proposed amendment to its coffee ``C'' futures contract that would add 
Miami, Florida as a delivery point, with futures deliveries at that 
location being subject to a discount of one and one-quarter cents per 
pound. 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 amendment is 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 addition of Miami, Florida as a delivery point for the CSCE 
coffee ``C'' 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 coffee ``C'' futures contract currently 
provides for delivery of coffee in CSCE-licensed warehouses located in 
the Ports of New York, New Orleans and San Francisco. Under the 
contract's existing terms, coffee is deliverable at par in the Port of 
New York, at a discount of three-quarters of one cent (75 points) in 
the Port of San Francisco, and at a discount of one and one-quarter 
cents per pound in the Port of New Orleans.
    The proposed amendment would establish the Port of Miami, Florida 
as an additional coffee ``C'' futures delivery point, with futures 
deliveries at Miami being subject to a discount of one and one-quarter 
cents per pound. Under the proposed amendments, the Port of Miami is 
defined to include both the Port of Miami and Port Everglades.\1\ The 
CSCE proposes to apply the amendment to all currently listed contract 
months following the last contract month in which there is an open 
position on the date that the amendment is made effective and to newly 
listed contract months.
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    \1\Port Everglades is located in Fort Lauderdale, Florida.
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    The CSCE indicates that the proposal to add Miami as a delivery 
point is justified by the amount of trading activity in the cash market 
at that location and that the proposal will be beneficial to those CSCE 
members and others who use the contract for hedging. In this respect, 
information submitted by the CSCE indicates that, during 1992 and 1993, 
the Customs District of Miami was the fifth-ranked port of entry in 
terms of the quantity of coffee imported into the United States and 
accounted for eight percent of all coffee entering the United States in 
1993. The CSCE also indicates that there are adequate delivery 
warehouse facilities in the Port of Miami.
    With respect to the proposed one and one-quarter cents per pound 
discount for futures deliveries at Miami, the CSCE also indicated that 
the proposed discount falls within the range of prevailing differences 
between the total costs of shipping coffee to warehouses in Miami and 
New York from major coffee producing countries in Central and South 
America. The CSCE indicated that the total costs of shipping the same 
growths of coffee to warehouses in Miami and New Orleans from the 
producing countries are essentially the same. The CSCE also indicated 
that information provided to the Exchange by members of the coffee cash 
market regarding cash market pricing relationships between Miami and 
the futures contract's existing delivery points confirms that the 
proposed discount is appropriate.
    The Commission is requesting comments specifically in regard to the 
extent to which the proposed discount of one and one-quarter cents per 
pound for futures deliveries in Miami reflects cash marketing pricing 
relationships between Miami and the coffee ``C'' futures contract's 
existing delivery points.
    Copies of the proposed amendment will be available for inspection 
at the Office of the Secretariat, Commodity Futures Trading Commission, 
2033 K Street NW., Washington, DC 20581. Copies of the amended terms 
and conditions can be obtained through the Office of the Secretariat by 
mail at the above address or by telephone at (202) 254-6314.
    The materials submitted by the CSCE in support of the proposed 
amendment 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 Commission's 
headquarters in accordance with CFR 145.7 and 145.8.
    Any person interested in submitting written data, views or 
arguments on the proposed amendment should send such comments to Jean 
A. Webb, Secretary, Commodity Futures Trading Commission, 2033 K Street 
NW., Washington, DC 20581 by the specified date.

    Issued in Washington, DC on April 19, 1994.
Blake Imel,
Acting Director, Division of Economic Analysis.
[FR Doc. 94-9880 Filed 4-22-94; 8:45 am]
BILLING CODE 6351-01-P