[Federal Register Volume 60, Number 114 (Wednesday, June 14, 1995)]
[Notices]
[Page 31286]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14530]
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COMMODITY FUTURES TRADING COMMISSION
Coffee, Sugar & Cocoa Exchange: Proposed Amendments to the Sugar
No. 11 (World Raw Sugar) Futures Contract Increasing the Minimum Daily
Loading Rate for Futures Delivery Sugar and Increasing the Minimum
Depth of Berths or Anchorages Required at Delivery Ports
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice of Proposed Contract Market Rule Changes.
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SUMMARY: The Coffee, Sugar & Cocoa Exchange (``CSCE'') has submitted
proposed amendments to its Sugar No. 11 (world raw sugar) futures
contract that would increase the minimum daily loading rate for sugar
delivered against the futures contract and increase the minimum depth
of berths or anchorages required at delivery ports. 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 and that publication of the proposed amendments
would be in the public interest. On behalf of the Commission, the
Division is requesting comment on this proposal.
DATES: Comments must be received on or before July 14, 1995.
ADDRESSES: Interested persons should submit their views and comments to
Jean A. Webb, Secretary, Commodity Futures Trading Commission, 2033 K
Street NW, Washington, D.C. 20581. Reference should be made to the
proposed amendments increasing the minimum loading rate and the minimum
depth of berths or anchorages that must be provided at delivery ports
for sugar No. 11 futures contract deliveries.
FOR FURTHER INFORMATION CONTACT: Frederick V. Linse, Division of
Economic Analysis, Commodity Futures Trading Commission, 2033 K Street
NW, Washington, D.C. 20581, telephone (202) 254-7303.
SUPPLEMENTARY INFORMATION: The existing terms of the sugar No. 11
futures contract provide that raw sugar is to be loaded into the
receiver's vessel at a port nominated by the deliverer that is
customarily used for shipping the particular growth of sugar being
delivered.1 The contract's terms require that deliverers load at
least 750 long tons of raw sugar per weather working day (stevedoring
holidays excluded) for despatch and demurrage purposes; provided the
vessel being loaded is capable of receiving at this rate, and provided
that the vessel has a minimum of four hatches available and accessible.
If less than four hatches are available and accessible, or if the
vessel is otherwise incapable of being loaded at the aforesaid loading
rate, the loading rate is reduced proportionately. The current terms of
the contract also require that the port nominated by the deliverer must
be capable of providing a berth or anchorage that will enable vessels
drawing 28 feet of water to proceed to and depart from such berth or
anchorage always safely afloat.
\1\The futures contract provides for the delivery of raw sugar
produced in 29 countries.
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The proposed amendments would increase to 1,500 from 750 long tons
the minimum amount of raw sugar that a deliverer would be required to
load per weather working day (stevedoring holidays excluded). The
proposed amendments would also increase to 30 from 28 feet the minimum
depth of berths or anchorages that ports nominated by a deliverer must
be capable of providing.
In support of the proposed amendments, the CSCE indicated that
increased use of mechanical loading at most of the delivery ports used
for the delivery of sugar has made the proposed loading rate of 1,500
long tons of sugar per weather working day the commonly used loading
rate in the sugar industry. The CSCE also indicated that the proposed
minimum depth of berths or anchorages required at delivery ports is
necessary to accommodate the larger vessels now generally being built
and chartered for the transportation of raw sugar.
The CSCE proposes to make the proposed amendment increasing the
minimum loading rate effective following Commission approval with
respect to the May 1996 contract month and all delivery months listed
thereafter. The CSCE proposes to make the proposed amendment increasing
the minimum depth of berths or anchorages required at delivery ports
effective upon Commission approval beginning with the first contract
month following the last contract month in which there is an open
position and for all contract months listed thereafter.
On behalf of the Commission, the Division is requesting comment on
the proposed amendments. In particular, the Division is seeking comment
regarding the extent to which the proposed amendments reflect cash
market practices. In addition, commenters are requested to address the
effect that the proposed amendments may have on the number of ports
eligible for futures delivery purposes and the availability of
economically deliverable supplies of raw sugar for the futures
contract.
Copies of the proposed amendments will be available for inspection
at the Office of the Secretariat, Commodity Futures Trading Commission,
2033 K Street NW, Washington, D.C. 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
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 Commission's
headquarters in accordance with 17 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, 2033 K Street
NW, Washington, D.C. 20581 by the specified date.
Issued in Washington, D.C. on June 8, 1995.
Blake Imel,
Acting Director.
[FR Doc. 95-14530 Filed 6-13-95; 8:45 am]
BILLING CODE 6351-01-P