The CME Group on Oct. 31 announced plans to increase the maximum storage rates for soymeal and soyoil receipts and certificates, effective on March 19, 2020 with the expiration of the March 2020 futures contracts.
Specifically, the maximum storage charges for the soybean oil futures contract would increase from 3/10ths of 1 cent per 100 pounds per day to one-half (5/10ths) of 1 cent per 100 pounds per day. Meanwhile, the maximum premium charges for the soybean meal futures contract would increase from 7 cents per ton per day to 12 cents per ton per day. The increases are designed to better align storage costs with those for soybeans, which are scheduled to increase in November 2019. The CME Group’s proposal can be accessed here.
The proposal is subject to review and approval by the Commodity Futures Trading Commission. The NGFA’s Risk Management Committee has been extremely active in interacting with the CME Group on its storage rates, and the NGFA will be providing further context and analysis in the next edition of the NGFA Newsletter.