[Federal Register Volume 64, Number 218 (Friday, November 12, 1999)]
[Notices]
[Pages 61607-61608]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29579]


-----------------------------------------------------------------------

COMMODITY FUTURES TRADING COMMISSION


Proposed Amendments to Chicago Board of Trade Rough Rice Futures 
Contract Regarding Quality Specifications for Deliverable Rough Rice

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of availability of proposed amendments.

-----------------------------------------------------------------------

SUMMARY: The Chicago Board of Trade (CBT or Exchange) has proposed 
amendments to the Chicago Board of Trade rough rice futures contract. 
The proposed amendments were submitted under the Commission's 45-day 
Fast Track procedures which provides that, absent any contrary action 
by the Commission, the proposed amendments may be deemed approved on 
December 16, 1999. 45 days after the Commission's receipt of the 
proposals. The Acting Director of the Division of Economic Analysis 
(Division) of the Commission, acting pursuant to the authority 
delegated by Commission Regulation 140.96, has determined that 
publication of the proposals for comment is in the public interest, 
will assist the Commission in considering the views of interested 
persons, and is consistent with the purpose of the Commodity Exchange 
Act.

DATES: Comments must be received on or before November 29, 1999.

ADDRESSES: Interested persons should submit their views and comments to 
Jean A. Webb, Secretary, Commodity Futures Trading Commission, Three 
Lafayette Centre, 21st Street, NW Washington, DC 20581. In addition, 
comments may be sent by facsimile transmission to facsimile number 
(202) 418-5521, or by electronic mail to [email protected]. Reference 
should be made to the proposed amendments to the CBT rough rice futures 
contract.

FOR FURTHER INFORMATION CONTACT: John Bird of the Division of Economic 
Analysis, Commodity Futures Trading Commission, Three Lafayette Centre, 
21st Street NW, Washington, DC 20581, telephone (202) 418-5274. 
Facsimile number: (202) 418-5527. Electronic mail: [email protected].

SUPPLEMENTARY INFORMATION: The existing terms of the rough rice futures 
contract provide for the delivery of rough rice meeting the official 
U.S. grade standards promulgated by the United States Department of 
Agriculture for U.S. No. 2, or better, long grain rice. The standards 
for U.S. No. 2 grade rice specify a maximum level for stained rice of 
1.5 percent, which is equivalent to approximately 300 stained kernels 
in a 500 gram sample containing approximately 20,000 kernels. The 
standards for U.S. No. 2 grade rice also permit two heat-damaged 
kernels in a 500-gram sample.
    The proposed amendments will reduce the quantity of stained rice 
permitted in rough rice deliverable on the futures contract and will 
prohibit delivery of rough rice which contains heat-damaged rice. The 
proposed amendments will specify that deliverable rough rice may 
contain no more than 10 stained and light stained kernels in a 500-gram 
sample and that no more than five kernels of these 10 kernels may be 
stained. No heat-damaged kernels will be permitted in deliverable rice.
    The Exchange intends to apply the proposed amendments to all newly 
listed contract months following Commission approval.
    The CBT indicates that the proposed amendments will improve the 
pricing accuracy and efficiency of the rough rice futures market. The 
Exchange notes, in this regard, that the futures contract's existing 
terms provide for the delivery of rough rice containing a maximum of 
about 300 kernels of stained rice and two heat damaged kernels in each 
500 gram sample of rice. The CBT indicates, however, that the vast 
majority of rough rice traded in the domestic and export markets is 
free of stained and heat damaged kernels. The Exchange also notes that 
rice which contains any amount of stained beyond five lightly stained 
kernels is normally traded at prices significantly below that of rice 
that is free of stain. The Exchange indicates that futures prices 
currently may reflect the value of rough rice containing stained/heat 
damaged rice in excess of normal cash market standards, since 
deliverers have tended to deliver

[[Page 61608]]

such rice on the futures contract. The CBT indicates that, as a result, 
the proposed standards for stained and heat damaged rice will allow the 
futures contract's prices to reflect more closely the majority of rough 
rice traded in the cash market.
    The Commission is especially interested in comments regarding the 
degree to which the proposed specifications reflect specifications 
ordinarily observed in the cash market and the extent to which, if any, 
the proposed amendments will affect deliverable supplies for the 
futures contract.
    Copies of the proposed amendments will be available for inspection 
at the Office of the Secretariat, Commodity Futures Trading Commission, 
Three Lafayette Centre, 21st Street NW, Washington, DC 20581. Copies of 
the proposed amendments can be obtained through the Office of the 
Secretariat by mail at the above address, by phone at (202) 418-5100, 
or via the Internet on the CFTC website at www.cftc.gov under ``What's 
Pending''.
    Other materials submitted by the CBT in support of the proposal 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)), except to the extent they are entitled to confidential 
treatment as set forth in 17 CFR 145.5 and 145.9. Requests for copies 
of such materials should be made to the FOI, Privacy and Sunshine Act 
Compliance Staff of the Office of 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, or with respect to their other 
materials submitted by the CBT, should send such comments to Jean A. 
Webb, Secretary, Commodity Futures Trading Commission, Three Lafayette 
Centre, 21st Street NW, Washington, DC 20581 by the specified date.

    Issued in Washington, DC, on November 5, 1999.
John R. Mielke,
Acting Director.
[FR Doc. 99-29579 Filed 11-10-99; 8:45 am]
BILLING CODE 6351-01-M