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Normal Daily Settlement Procedure


Daily settlements of Urea FOB US Gulf Coast (UFN), Urea FOB Egypt (UFG), Urea FOB Yuzhny (UFZ), UAN FOB NOLA (UFU), DAP FOB Tampa (DFT), DAP FOB NOLA (DFL) swaps, and Urea FOB Middle East (UME) futures are determined by CME Group staff based on the following approach:

Tier 1:   All relevant market data available at  14:30 CT will be used to derive a settlement in each contract month.

Tier 2:   If no relevant information is received by 14:30 CT, then the contract month settles to the prior-day settlement price.

Normal Final Settlement

Final settlements of Urea FOB US Gulf Coast (UFN), Urea FOB Egypt (UFG), Urea FOB Yuzhny (UFZ), UAN FOB NOLA (UFU), DAP FOB Tampa (DFT), FOB Middle East Futures(UME) and DAP FOB NOLA (DFL) swaps are based upon price assessments compiled by ICIS and Profercy, two widely followed industry publications, enabling participants to separately manage price risk and physical supply concerns.

The final settlement price for each contract is based on price assessments published weekly by ICIS and Profercy during the contract month. For each set of weekly data published by ICIS and Profercy, comprising both a high and a low price from each source, the highest overall price (or in the case of multiple prices, one of the highest prices) and the lowest overall price (or in the case of multiple prices, one of the lowest prices) shall be removed from the data set. The arithmetic average of the remaining data points is calculated as the weekly average price.

The final settlement price is the arithmetic average of the weekly average prices determined from price assessments published during the contract month.

Additional Details

For more information regarding CBOT Fertilizer Swaps, please see the following page:

https://www.cmegroup.com/trading/agricultural/files/cbot-fertilizer-product.pdf

Urea FOB US Gulf Coast (UFN), Urea FOB Egypt (UFG), Urea FOB Yuzhny (UFZ), UAN FOB NOLA (UFU), DAP FOB Tampa (DFT), FOB Middle East Futures(UME) and DAP FOB NOLA (DFL) swaps are financially settled upon expiration. For additional details, please see the CBOT Rulebook (Chapters 44-48):

If you have any questions, please call the CME Global Command Center.


Note: In the event the aforementioned calculations described in this advisory cannot be made or if CME Group staff, in its sole discretion, determines that anomalous activity yields results that are not representative of the fair value of the contract, the staff may determine an alternative settlement price.