Please be informed, effective November 1, 2006, the CME fee for Pork Bellies grading inspections will increase to $300 per inspection. This increase will be applicable to the 2007 Pork Bellies crop year contracts, which are tentatively scheduled to be listed on February 24, 2006, beginning with the February ’07 contract. (The grading and inspection cycle for the 2007 crop year begins on November 1, 2006). There is no change to the grading inspection fee associated with the currently listed 2006 Pork Bellies contracts and their grading and inspection cycle, which began on November 1, 2005, and extends through August 31, 2006.

The $300 represents a flat fee that will apply to both in-plant and warehouse grading inspections. It will continue to be paid by the party requesting the grading.  Increasing the inspection fee is necessary to attain a neutral pass-through of the fee charged to the Exchange by the USDA. 

If you have any questions regarding this matter, please contact Steve Staszak, Director Operations, Clearing House Department, at 312-930-3189; or Ken Lovett, Associate Director Market Surveillance, Market Regulation Department, at 312-930-3257.