The Board of Directors approved a change to the vomitoxin specification for delivery in satisfaction of CBOT^® Wheat futures contracts.  The new specification reduces the level of deoxynivalenol (vomitoxin) a taker of wheat can request at load-out from five (5) parts per million to four (4) parts per million. 

The Exchange will implement this provision beginning with the September 2006 and subsequent contract months. 

Effective on September 1, 2006, warehouse receipts delivered in satisfaction of Wheat futures contracts must meet the new vomitoxin standard specified above.  Warehouse receipts issued by regular facilities prior to September 1, 2006 will not be deliverable against September 2006 or subsequent contract months unless the regular facility certifies on the warehouse receipt that the holder has the option to receive load-out of wheat meeting the new vomitoxin requirement.

Holders of wheat warehouse receipts issued prior to September 1, 2006 may:

1.         Carry the warehouse receipt indefinitely as long as storage is paid, and/or

2.         Cancel the warehouse receipt for load-out, or

3.         At a mutually acceptable price, sell the warehouse receipt to the issuing warehouseman or in the cash market, or

4.         At a mutually acceptable premium, request the issuing warehouseman to upgrade the warehouse receipt to meet the new vomitoxin requirement.

If you have any questions, please contact David Lehman (312/347-3848) or Fred Seamon (312/347-3808) in the Business Development Department.