[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
