CBOT to limit ag receipts held by non-grain firms
CHICAGO, Jan 5 (Reuters) - The Chicago Board of Trade requested approval from its regulator, the Commodity Futures Trading Commission, to limit the number of grain shipping certificates and warehouse receipts that a non-grain firm can hold, an exchange advisory said on Monday.
The rule change is designed to reduce the large number of delivery instruments held by non-grain firms and increase the hedging effectiveness of CBOT's corn, wheat, oat, rice, soybean, soyoil and soymeal contracts, the advisory said.
The CBOT, a subsidiary of the CME Group (CME.O), has been under fire for more than a year by the U.S. grain industry to improve the hedging performance of its grain and soy contracts, in particular its soft red winter wheat contract.
Beginning Feb. 17, the Chicago Board of Trade will limit the number of registered shipping certificates or warehouse receipts that a non-grain entity can hold. Anyone holding more than the specified limit has until May 31 to comply.
The limits are listed below. Commodity Limit Corn shipping certificates 600* Soybean shipping certificates 600* Wheat shipping certificates 600* Soybean oil warehouse receipts 540 Soybean meal shipping certificates 720 Oat shipping certificates 600 Rough rice warehouse receipts 600 *Includes certificates for CBOT mini-contracts. (Reporting by Christine Stebbins; editing by Richard Chang)
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