Commodity Futures Trading Commission Request of the Kansas City Board of Trade for Approval of Amendments to Its Hard Red Winter Wheat Futures Contract Lowering the Price Discount for Delivery of U.S. No. 3 Hard Red Winter Wheat, and Modifying the Maximum

[Federal Register: January 28, 2002 (Volume 67, Number 18)]
[Notices]
[Page 3881-3882]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28ja02-34]

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COMMODITY FUTURES TRADING COMMISSION


Request of the Kansas City Board of Trade for Approval of
Amendments to Its Hard Red Winter Wheat Futures Contract Lowering the
Price Discount for Delivery at Huchinson, KS, Increasing the Price
Discount for Delivery of U.S. No. 3 Hard Red Winter Wheat, and
Modifying the Maximum Permissible Amount of Wheat of Other Classes
Deliverable as U.S. No. 3 Hard Red Winter Wheat

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of availability of terms and conditions of proposed
amendments to commodity futures contract.

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SUMMARY: The Kansas City Board of Trade (KCBT or Exchange) has
requested that the Commission approve amendments to its hard red winter
wheat futures contract, pursuant to the provisions of section
5c(c)(2)(B) of the Commodity Exchange Act as amended. The proposed
amendments would reduce to 9 from 12 cents per bushel the discount for
delivery at Hutchinson, Kansas, increase to 5 from 3 cents per bushel
the discount for delivery of U.S. No. 3 hard red winter wheat, and
reduce the maximum permissible amount of wheat of other classes
deliverable as No. 3 hard red winter wheat. 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 proposal for comment is in the
public interest, will assist the Commission in considering the views of
interested persons, and is consistent with the purposes of the
Commodity Exchange Act.

DATES: Comments must be received on or before February 12, 2002.

ADDRESSES: Interested persons should submit their views and comments to
Jean A. Webb, Secretary, Commodity Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581. In
addition, comments may be sent by facsimile transmission to (202) 418-
5521 or by electronic mail to [email protected]. Reference should be
made to the KCBT hard red winter wheat futures contract amendments.

FOR FURTHER INFORMATION CONTACT: Please contact Martin Murray of the
Division of Economic Analysis, Commodity Futures Trading Commission,
Three Lafayette Centre, 1155 21st Street NW., Washington, DC

[[Page 3882]]

(202) 418-5276. Facsimile number: (202) 418-5527. Electronic mail:
[email protected].

SUPPLEMENTARY INFORMATION: The KCBT hard red winter wheat futures
contract calls for the par delivery of 5,000 bushels of U.S. No. 2 hard
red winter wheat in Exchange-licensed warehouses located in Kansas City
(in both Missouri and Kansas). The Exchange also permits delivery of
U.S. No. 1 and U.S. No. 2 hard red winter wheat as well as delivery at
Exchange-licensed warehouses in Hutchinson, Kansas, at specified price
differentials.
    The Exchange is proposing to reduce the price discount for delivery
at Hutchinson, Kansas, to 9 cents from 12 cents per bushel per bushel.
The Exchange is also proposing to amend the contract's quality
specifications for the delivery of U.S. No. 3 hard red winter wheat by
restricting the maximum permissible amount of wheat of other classes
included in delivery wheat. Currently, the futures contract provides
that deliverable wheat must meet the official standards specified for
U.S. No. 3 hard red winter wheat, which sets a maximum limit of 10
percent for wheat of other classes. Finally, the Exchange proposes to
increase the price discount for delivery of U.S. No. 3 hard red winter
wheat to 5 cents per bushel from 3 cents per bushel.
    The Exchange proposes to apply the proposed amendments to existing
futures contract months, beginning with the July 2003 contract month,
and to all newly listed contract months. In this regard, the Exchange
has established a limited period during which holders of Exchange-
registered warehouse receipts for U.S. No. 3 hard red winter wheat that
does not reflect the proposed 5% maximum tolerance for wheat of other
classes may present such receipts to the issuing warehouse for
replacement with receipts for wheat that reflects the proposed 5%
maximum tolerance. Specifically, the Exchange proposes that the period
for exchanging such receipts will extend from the first business day
prior to the first notice day through the third business day following
notice day of the July 2003 contract month. As part of the
implementation plan, the Exchange proposes to establish a maximum fee
of 5 cents per bushel, which warehouse receipt issuers may charge
receipt holders for the replacement receipts.
    Copies of the amendments will be available for inspection at the
Office of the Secretariat, Commodity Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581. Copies
of the terms and conditions can be obtained through the Office of the
Secretariat by mail at the above address or by phone at (202) 418-5100.
    Other materials submitted by the KCBT in support of the request for
approval may be available upon request pursuant to the Freedom of
Information Act (5 U.S.C. 552) and the Commission's regulations there
under (17 CFR part 145 (2000)), 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 of 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 terms and conditions, or with respect to
other materials submitted by the KCBT should send such comments to Jean
A. Webb, Secretary, Commodity Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581 by the
specified date.

    Issued in Washington, DC on January 22, 2002.
Richard A. Shilts,
Acting Director.
[FR Doc. 02-1946 Filed 1-25-02; 8:45 am]
BILLING CODE 6351-01-M