Additional Information Regarding CBOT Recent Declaration of Force Majeure at Corn and Soybean Shipping Stations Due to Flooding on the Illinois River

On 17 June 2015, The Board of Trade of the City of Chicago, Inc. (CBOT or Exchange) issued SER - 7399 declaring a condition of Force Majeure for all Corn and Soybean shipping stations which is continuing.  A majority of delivery facilities on the Illinois River continue to be unable to load due to high water levels and/or flooding, and CBOT Rule 703.C.G(8) remains in effect for ALL Corn and Soybean shipping stations until further notice.  The Commodity Futures Trading Commission (CFTC) was advised of this emergency action on 17 June 2015 (see CBOT Submission No. 15-279).

Corn and Soybean shipping stations may register and deliver shipping certificates during conditions of Force Majeure.  However, the Exchange under authority of CBOT Rule 701 (Declarations of Force Majeure) hereby affirms that should the owner of such shipping certificates delivered during conditions of Force Majeure cancel them for load-out, and the shipping station that issued said shipping certificates is unable to load due to the conditions of Force Majeure, premium charges as described in Rules 10108 for Corn and Rule 11108 for Soybeans shall be suspended starting the calendar day following the day that loading orders are issued and ending on the calendar day prior to the day that the condition of Force Majeure is no longer in effect. 

All calendar days during the condition of Force Majeure shall not count toward the three-day loading obligation shipping stations face following the receipt of loading orders and canceled shipping certificates (Rule 703.C.A.1).  Also, all business days during the condition of Force Majeure shall not count toward the two-business-day window owners of shipping certificates have to decide against loading out grain (Rule 703.C.C).  However, should an owner decide during the Force Majeure conditions or within two days following the end of Force Majeure conditions to have shipping certificates re-issued, the owner shall be responsible for all premium charges during the Force Majeure period.

Questions may be directed to Fred Seamon (312-634-1587 or Fred.Seamon@CMEGroup.com) or Dave Lehman (312-930-1875 or David.Lehman@CMEGroup.com) in Research and Product Development.