• REMINDER: MILLING YIELD PREMIUM AND DISCOUNT SCHEDULE EFFECTIVE SEPTEMBER 3, 2013 IN ROUGH RICE FUTURES

      • To
      • Members, Member Firms and Market Users
      • From
      • Research and Product Development
      • #
      • SER-6795
      • Notice Date
      • 13 August 2013
      • Effective Date
      • 03 September 2013
    • USDA has announced the 2013 rice loan rates by class[1]. For the 2013 crop stored in commercial warehouses, the whole kernel (Head Rice) loan rate for long grain rice is $10.34 per hundredweight (cwt.) and the broken kernel loan rate for long grain rice is $5.83 per cwt. The CBOT Rough Rice futures contract milling yield premium and discount schedule that takes effect on the first delivery day of the September 2013 contract (September 3, 2013) is based on the 20 percent trimmed mean of the 2009 through 2013 USDA loan rates for long grain rice.
       
      USDA Loan Rates – Long Grain Rice ($ per cwt.)
       

      Year
      Head Rice
       
      Broken Rice
      2009
      $9.94
       
      $6.84
      2010
      $9.91
       
      $7.01
      2011
      $9.93
       
      $7.06
      2012
      $10.13
       
      $6.03
      2013
      $10.34
       
      $5.83
      Trimmed Mean Avg.
      $10.00
       
      $6.63

       
      CBOT Rough Rice futures specify that head rice over (below) 55 percent receives a premium (discount) and broken rice over (below) 15 percent receives a premium (discount). Current milling yield premiums and discount rates are $9.96 per cwt. for head rice and $6.84 per cwt. for broken rice. Beginning September 3, 2013, milling yield premium and discount rates will increase to $10.00 per cwt. for head rice and decrease to $6.63 per cwt. for broken rice. For example, an outstanding warehouse receipt specifying 58 percent head rice and 12 percent broken rice and with an underlying futures price of $16.00 would be delivered at $16.101 per cwt. (16.00 + (.58 - .55)*10.00 – (.15 - .12)*6.63). 
       
      If you require any additional information, please contact Fred Seamon at 312-634-1587 or via e-mail at Fred.Seamon@cmegroup.com. 

CME Group is the world’s leading derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). 
Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.

© 2024 CME Group Inc. All rights reserved.