load-out for warehouses in [Fetede-and] Minneapolis-St. Paul shall be at the
normal rate of load-out for the facility. The load-out rate for shipping stations
in Toledo shall depend on-the conveyance and shall not be less than the
following per business day:

(When certificate

holder requests in

{When certificate

holder requests in

writing individual

writing unit average

weights and grades
per car load)

weights and grades)*

Vessel

hippers with

50 Hopper Cars*

65 Hopper Cars

300,000 Bushels

Regular Capacity
greater than 700
Certificates
hippers with
Regular Capacity less

than or equal to 700
Certificates

25 Hopper Cars 33 Hopper Cars 300,000 Bushels

The load-out rate for warehouses/shipping stations in Chicago and Burns Harbor
and for wheat [warehouses] shipping stations in St. Louis shall depend on the
conveyance and type of grain being loaded and shall not be less than the
following per business day:

(When receipt | (When receipt | (When receipt Vessel Barge
holder holder holder
requests in requests in requests in
writing writing batch writing unit
individual weights and average
weights and grades)!"!? weights and
grades per car rades)
load)
[Wheat] 25 Hopper 35 Hopper NIA 300,000 3 Barges
Corn, Cars Cars Bushels
Soybeans
Wheat 25 Hopper 35 Hopper 45 Hopper 300,000 3. Barges
Cars Cars Cars Bushels
Oats 15 Hopper 20 Hopper 180,000 2 Barges
Cars Cars Bushels

unit average weight and grade shall refer to a buyer’s request in writing for average weight and average

2 grade per unit rail shipment.

*Minimum load-out rates per hopper car shall refer to 4750 cu ft. grain cars.
(413.9 batch weight and grade shall refer to a buyer's request in writing for 1 weight and 1 grade per 5 rail cars.

Barge load-out rates for corn and soybeans will be at the shipping station's
registered daily rate of loading. When wheat and corn or soybeans or when oats
and corn or soybeans are in the lineup for loading, the higher loading rate will
apply for total barge loadings on that day. However, a warehouseman or shipper
is not obligated to load barges of one type of grain that exceeds the daily barge
loading rate for that type of grain. Corn and soybeans are considered one type of
grain for this regulation pertaining to barge loading rates.


warehouseman/shipper the identity of the vessel and the estimated-time-of-
arrival no more than 5 calendar days prior to constructive placement of the
vessel. In addition, an owner is entitled to receive updated information, upon
request, on the warehouse/shipping station scheduled load-in and load-out
lineups.

c. The carrier or its agent notifies the warehouseman/shipper of the "constructive
placement" of the conveyance. The term “constructive placement" is defined in
CBOT Regulations 1081.01(12)A.3 (1), (2) and (3). Only the
warehouseman/shipper can order the conveyance to the warehouse/shipping
station for actual placement for loading.

d. The warehouseman/shipper is not responsible for the failure of the carrier to
present clean, ready-to-load conveyance to the warehouseman/shipper.

4. Request for Grain Inspection or Stevedoring Service.

a. The owner may, at his option and expense, request the warehouseman/shipper
to arrange inspection and weighing service provided by the Federal Grain
Inspection Service ("FGIS").

b. In case of water load-out (barge or vessel), the owner should request the
warehouseman/shipper to arrange stevedoring service. In this regard, the
owner may designate to the warehouseman/shipper the stevedoring service he
would like to use.

c. The warehouseman/shipper does not control the availability of the FGIS and
the stevedoring services.

5. Actual Load-Out.

a. The warehouseman/shipper shall transmit to the Registrar by 11:00 a.m. the
name, location of warehouse/shipping facility, and number of delivery
vessels/barges/rail cars constructively placed that day. The Registrar shall
maintain a current record of the number of delivery vessels/barges/rail cars
constructively placed and shall be responsible for posting this record on the
Exchange Floor and the CBOT website.

b. The warehouseman/shipper must load-out all conveyances in the order of their
constructive placement. Load-out of transportation constructively placed on the
same day shall be in the order in which loading orders were received. An
operator of a regular facility in Chicago, Burns Harbor, along the Illinois
Waterway, and St. Louis has the obligation of loading grain represented by
warehouse receipts or shipping certificates giving preference to takers of
delivery.


two-year term beginning July 1 of that year, and at any time during a current term for the
balance of that term. Regular grain warehouses or shippers who desire to increase their
regular capacity during a current term shall make application for the desired amount of
total regular capacity on the same form. Initial regularity for the current term and
increases in regularity shall be effective either thirty days after a notice that a bona fide
application has been received is posted by the Exchange, or the day after the
application is approved by the Exchange, whichever is later. Persons operating grain
warehouses or shipping stations who desire to have their daily rate of loading
decreased, shall file with the Exchange a written request for such decrease at which
time a notice will be posted by the Exchange. The decrease in the daily rate of loading
for the facility will become effective 30 days after a notice has been posted by the
Exchange or the day after the number of outstanding certificates at the facility is equal
to or less than 20 times the requested rate of loading, whichever is later. Persons
operating grain warehouses or shipping stations who wish to have their regular capacity
space decreased shall file with the Exchange a written request for such decrease and
such decrease shall be effective once a notice has been posted by the Exchange.
Applications for a renewal of regularity shall be made prior to May 1 of even years for
the respective years beginning July 1 of those years, and shall be on the same form.

The Exchange may establish such requirements and conditions for approval of
regularity as it deems necessary. The following shall constitute the minimum
requirements and conditions for regularity of grain warehouses and shipping stations:

(1) The warehouse or shipping station making application shall be inspected by the
Exchange or the United States Department of Agriculture. Where application is
made to list as regular a warehouse which is not regular at the time of such
application, the applicant may be required to remove all grain from the warehouse
and to permit the warehouse to be inspected and the grain graded, after which
such grain may be returned to the warehouse and receipts issued therefor.

See Regulation C1081.01(1)-Regularity of Warehouses and Issuers of Shipping
Certificates for Corn futures contracts.

See Regulation S1081.01(1)-Regularity of Warehouses and Issuers of Shipping
Certificates for Soybean futures contracts.
(2) Such warehouse shall be connected by railroad tracks with one or more railway

lines.

See Regulation C1081.01(2)-Regularity of Warehouses and Issuers of Shipping
Certificates for Corn futures contracts

See Regulation $1081.01(2)-Regularity of Warehouses and Issuers of Shipping
Certificates for Soybean futures contracts.


5)

6)

7)

and methods of obtaining weights and any such other information on the
weighing process must be mutually accepted by the maker and taker of
delivery before the barge is loaded. When the official weight becomes
known for a barge, overfills and underfills will be settled on the market
value, expressed as a basis, for grain FOB barge at the barge loading
station on the day that the grain is loaded. Before the barge is loaded, the
taker and maker of delivery will agree on a basis over or under the nearby
futures that overfills and underfills will be settled on. On the day that the
weight tolerance becomes known to both parties, the flat price settlement
will be established by applying the basis to the nearby futures month
settlement price on the day of unloading or the day of loading if origin
weights are used. If the day of unloading is the last trading day in the
nearby futures month, the next following futures month will be used for
settlement. If the day of unload is not a business day, the next following
business day will be used to establish the flat price. In order to convert the
agreed upon basis on the day that the grain was loaded to a basis relative
to the current nearby futures month, the futures spread on the day of
loading will be used, provided that, the nearby futures did not close
outside of the price limits set for all other futures months. In this case, the
spread on the first following business day that the nearby futures closed
within the price limits applicable for all other futures months would be
used.

The shipper shall not be required to meet his minimum daily barge load-
out rate when transportation has not been actually placed at the shipping
station, transportation equipment is not clean and load ready, inspection
services are not available, or inclement weather, including severe ice
conditions, prevents loading. However, the exceptions to load-out
requirements shall not include corn or soybeans that have not made
grade. If precluded from loading when equipment is available, the shipper
shall notify the owner by 10:00 a.m. the following business day.
Notification shall be by telephone, e-mail or fax to the owner.

For Illinois Waterway barge loading at Burns Harbor, Regulation
1081.01(13)(A.)(a) pertaining to the protection of the Chicago barge rate
and inclement weather will apply.

Any expense for making the grain available for loading on the Illinois
Waterway will be borne by the party making delivery, provided that the
taker of delivery constructively places barge equipment clean and ready to
load within five (5) business days following the scheduled loading date of
the barge on the Illinois Waterway. If the taker's barges are not
constructively placed within five (5) business days following the scheduled
loading date of the barge on the Illinois Waterway, the taker shall pay the
shipper an amount not to exceed 30/100 of one cent per bushel per day
multiplied by the number of calendar days from the fifth business day


March 29, 2007
Ms. Eileen A. Donovan

Page 5

Another issue is that the storage rate for wheat is currently consistent with the rate
for both corn and soybeans. For simplicity, it is convenient that all share the same
storage rate. Thus, changing the storage rate for wheat necessitates consideration
of changing the storage rate for corn and soybeans. The CBOT Business
Development Department conducted a storage rate survey this past autumn and
found the following monthly cash market per bushel storage charges (in cents).
Note that the current storage rate of 15/100s of one cent per bushel per day
equates to roughly 4.5 cents per bushel per month.

The storage rate survey results here only consider cash market monthly storage
charges and do not include any load-in charges that can be prevalent, especially
during the harvest period. Thus, these results likely under report cash market
storage rates by as much as one-half to one cent. Thus, the storage survey
suggests that the current storage rate of 4.5 cents per bushel per month for corn
and soybeans is probably sufficient. A blended rate for wheat that captures the
yearly cash market charges would be approximately 16.5/100s of one cent per
bushel per day or just under 5 cents per bushel per month.

Increase the load-out rate at Toledo warehouses. The strong support from
market participants for changing the delivery instrument to a shipping certificate
and for increasing the storage rate for wheat was typically predicated also on
increasing load-out requirements on Toledo regular warehouses. The basic
argument is that by increasing the efficiency of the delivery process, delivery
becomes easier. More deliveries must be accompanied by faster load outs to
avoid disadvantaging the longs.


(Title)

(Date)

Appendix 10G.
APPENDIX 10G - GRAIN LOAD-OUT PROCEDURES

The following is a general outline of procedures for the load-out of grain covered by
Chicago Board of Trade ("CBOT") registered warehouse receipts/shipping certificates.
The procedures are based upon a combination of CBOT rules and regulations and trade
practice. Where applicable, CBOT rules and regulations are cited.

4. Cancellation of the Warehouse Receipt/Shipping Certificate.

a. To initiate the load-out process, the receipt/certificate holder, or owner, requests
his clearing firm to cancel the warehouse receipt/shipping certificate at the CBOT
Registrar's Office or requests load-out using the electronic form provided by the
Clearing House’s online system.

b. Warehouse receipts/shipping certificates cancelled after 4:00 p.m. shall be
deemed to be cancelled on the following business day.

c. The next step for the owner of cancelled rice[;] or oats [e-wheat] warehouse
receipts is to surrender them to the regular warehouseman or his representative
agent in Chicago. The agent must be a registered clearing member of the CBOT,
be located in the vicinity of the CBOT and be available during business hours
(except Exchange holidays). Business hours are 8:00 a.m. - 4:30 p.m., Monday -
Thursday and 8:00 a.m. - 3:00 p.m. on Friday.

d. At this time, the warehouseman/shipper, at his option, may require the owner to
pay storage/premium and insurance charges that have accumulated up to and
including the date of surrender. (See items 6(a) and (b) below.) The
warehouseman's/shipper’s agent shall accept these payments during business
hours.

e. At this time, the warehouseman, at his option, may also require the owner to pay
the warehouseman or his agent a load-out fee of up to 6 cents per bushel. A
fobbing charge of 4 cents per bushel was already paid at the time of delivery of
corn and soybean shipping certificates. (The maximum load-out/fobbing fee,


Regular grain warehouses and shipping stations shall not be required to meet
these minimum load-out rates when transportation has not been actually placed
at the warehouse, transportation equipment is not clean and load ready,
inspection services are not available, a condition of force majeure exists,
inclement weather, including severe ice conditions, prevents loading, or
stevedoring services are not available in the case of water conveyance.
However, the exceptions to load-out requirements shall not include grains or
soybeans which have not made grade. If precluded from loading when
equipment is available, the warehouseman/shipper shall notify the owner by
10:00 a.m. the following business day.

In addition, regular warehouses/shipping stations in Toledo and Minneapolis-
St. Paul shall not be required to meet the minimum load-out rate for a
conveyance when a "like" conveyance has been constructively placed for load-in
prior to the "like" conveyance for load-out. However, when a conveyance for
load-out is constructively placed after a "like" conveyance for load-in, the
warehouse will load-in grain from the "like" conveyance at the normal rate of
load-in for the facility. This rate of load-in shall depend on the conveyance(s)
being unloaded and shall not be less than the following minimums per business
day:

Vessel or Barge
Wheat, Corn, 35 Hopper Cars 50,000 Bushels 1 Barge
Soybeans
Oats 20 Hopper Cars 50,000 Bushels 1 Barge

Regular warehouses shall not be required to meet these minimum load-in rates
when a condition of force majeure exists, inspection services are not available,
inclement weather prevents unloading, or stevedoring services are not available
in the case of water conveyance.

Any increased overtime costs and charges for trimming and FGIS to meet
minimum loadout requirements shall be borne by warehouseman.

Vessel loading shall require 3 days pre-advice to warehouseman prior to the date
of arrival of the vessel. Failure to provide pre advice may delay loading by the
same number of days pre-advice is delayed prior to date of arrival of the vessel.

Inability of a warehouse receipt holder to provide conveyance at an elevator in a
timely manner will affect load-out of barges accordingly.

For purposes of this regulation, vessel and barge are "like" conveyances.


between a berth in the other switching district. On the day that the grain is
ordered out for shipment by vessel, the party making delivery will declare the
regular warehouse or shipping station in which the grain will be available for
loading.

See Regulation C1081.01(13)-Location for Corn futures contracts.

B. Oats. For the delivery of oats, regular warehouses may be located within the
Chicago Switching District or within the Burns Harbor, Indiana Switching District
(subject to the provisions of paragraph A above) or within the Minneapolis,
Minnesota or St. Paul, Minnesota Switching Districts.

Delivery in the Minneapolis or St. Paul Switching District must be made "in store" in
regular elevators providing barge-loading facilities and maintaining water depth
equal to the average draft of the current barge loadings in the Minneapolis and St.
Paul barge-loading districts.

However, deliveries of oats may be made in interior off-water elevators within the
Minneapolis or St. Paul Switching District, PROVIDED that the party making delivery
makes the oats available upon call within seven calendar days to load into a barge
at one river location in the Minneapolis or St. Paul barge-loading district. The party
making delivery must declare, within one business day after receiving warehouse
receipts and loading orders, the river location at which the oats will be made
available. Any additional expense incurred to move delivery oats from an off-water
elevator into barges shall be borne by the party making delivery; PROVIDED that the
party taking delivery presents barge equipment clean and ready to load within fifteen
calendar days from the time warehouse receipts and loading orders are tendered to
the delivering party.

Official weights and official grades as loaded into the barge shall govern for delivery
purposes.

C. Wheat. For the delivery of wheat, [regular warehouses] shipping stations may be
located within the Chicago Switching District or within the Burns Harbor, Indiana

Switching District (subject to the provisions of Paragraph A above), within the
Toledo, Ohio Switching District, or with respect to only No. 1 Soft Red Winter and
No. 2 Soft Red Winter Wheat, within the St. Louis-East St. Louis or Alton Switching
Districts.

Delivery in Toledo must be made fn-sterein-regutar-elevators] by shipping

certificates at regular shipping stations providing water loading facilities and
maintaining water depth equal to normal seaway draft of 27 feet.

However, deliveries of wheat may be made in off-water elevators within the Toledo,
Ohio Switching District PROVIDED that the party making delivery makes the grain
available upon call within five calendar days to load into water equipment at one


F. Certification of Corn, Soybeans and Wheat - Upon written request by a taker
of delivery at the time loading orders are submitted for the delivery of corn,
soybeans or wheat against canceled [warehouse-+receipts/|shipping
certificates, the delivery warehouseman/shipper shall certify in writing to the
taker of delivery on the day that the transportation conveyance is loaded that
the grain is of U.S. origin only.

G. Barge Load-Out Procedures for Corn and Soybeans - When corn or
soybeans represented by shipping certificates are ordered out for shipment
by water conveyance, the regular shipper has the obligation to load-out grain
at his registered daily rate of loading. The shipper's obligation shall begin to a
party no sooner than 3 business days after he receives canceled certificates
and written loading orders from the party or 1 business day after the
constructive placement of the water conveyance, whichever is later.

1) Allloading orders and shipping instructions received by 2:00 p.m. ona
given business day shall be considered dated that day. Orders received
after 2:00 p.m. on a business day shall be considered dated the following
business day. “To be nominated” (TBN) barge identities are acceptable in
loading orders. Load-out shall be in the order in which barge equipment
clean and ready to load is constructively placed at the appropriate fleeting
service serving the designated delivery point. Load-out of transportation
constructively placed on the same day shall be in the order in which
loading orders and shipping instructions were received. Notification of
loading orders and shipping instructions must be in writing to the shipper.

2) When loading orders and shipping instructions are received by 2:00 p.m.
on any given business day, the shipper will advise the owner by 10:00
a.m. the following business day of the scheduled loading dates.

Scheduled loading dates are estimated based on constructively placed
equipment and current loading orders. These dates are subject to change
if conditions covered in Regulation 1081.01(12)(G)(5) preclude the shipper
from meeting his minimum daily barge loadout rate or if barges for
subsequent loading orders are constructively placed. Notification will be by
telephone, mail, or fax to the owner. Shipper is required to provide
scheduled loading dates at owner's request.

3) Official grades as loaded into the water conveyance shall govern for
delivery purposes.

4) Official weights as loaded into the barge shall govern for delivery purposes
when available. When official weights are available at the shipping station,
the shipping certificates are considered a minimum/maximum quantity with
overfills/underfills settled by mutual agreement. When official weights as
loaded into the barge are not available, it is the responsibility of the taker
to obtain official weights at the destination. Any other governing weights


subject to change, is 6 cents per bushel for receipts and wheat certificates and
4 cents per bushel for corn and soybean certificates.)

f. If the owner decides against loading out grain within two days after canceling
warehouse receipts/shipping certificates, he may notify the
warehouseman/shipper that warehouse receipts/shipping certificates are to be
re-issued. In the case of rice[,] or oats [er-wheat], if the warehouseman is notified
by 12:00 noon, re-issued receipts shall be deliverable by 4:00 p.m. the following
business day. Requests to re-issue receipts/shipping certificates more than two
business days after receipts/shipping certificates are cancelled are subject to
mutual agreement. All fees for re-issuance are payable by the owner.

g. The Registrar bills the owner’s clearing firm a cancellation fee per
receipt/certificate. (Internal policy of CBOT’s Registrar’s Office.)

2. Submission of Written Loading Orders.

a. The owner provides the warehouseman/shipper with written loading orders that
identify the vessel, barge, or number of rail cars that will take delivery of the
grain, and that specify the grade and estimated number of bushels to be loaded.
“To be nominated” (TBN) barge identities are acceptable in loading orders.

b. Written loading orders must be received no later than two business days after
warehouse receipts/shipping certificates are cancelled.

c. The owner will notify the warehouseman/shipper of loading orders. All loading
orders received by 2:00 p.m. on a given business days shall be considered dated
that day. Orders received after 2:00 p.m. on a business day shall be considered
dated the following business day.

d. When loading orders are received by 2:00 p.m. of any given business day, the
warehouseman/shipper will advise the owner by 10:00 a.m. the following
business day of the scheduled loading dates and tonnage due. Notification of
scheduled loading dates and any changes in scheduled loading dates will be by
telephone, e-mail or telefax to the owner.

3. Arrangement of Transportation Conveyance.

a. Next, the owner arranges for proper conveyance of the grain to be loaded out
with a carrier; the conveyance may be rail cars, barge, or vessel, and must be
clean and ready-to-load.

b. An owner requesting vessel load-out, having surrendered canceled
receipts/certificates and tendered written loading orders to the
warehouseman/shipper, is entitled to the warehouse's/shipper’s current
scheduled load-in and load-out lineups, provided the owner gives to the


basis by the Chairman of the Board, with the approval of the Board. The
Committee shall consist of three members including one regular warehouseman
with suitable alternates. In case the strike bound elevator involved is in a market
other than that directly represented by the warehouseman appointed, the
Chairman may designate a member in said alternate market who is familiar with
cash grain values in that market. The sole duty of the Committee shall be to
determine that the bid is bona fide. The Committee shall not express any opinion
with respect to the economics of the bid.

Within the context of this Regulation, a strike bound elevator is defined as the
facility itself being on strike.

The maximum load-out charge on [wheat-and] oats which has been tendered in
satisfaction of the Board of Trade futures contracts shall be 6 cents per bushel.

The maximum premium for FOB conveyance on Corn and Soybean Shipping
Certificates which have been tendered in satisfaction of Board of Trade futures
contracts shall be 4 cents per bushel. The maximum premium for FOB
conveyance on Wheat Shipping Certificates which have been tendered in
satisfaction of Board of Trade futures contracts shall be 6 cents per bushel.

All fees for stevedoring services to load Corn, Wheat, and Soybeans into barges
are to be paid by the issuer of the Corn, Wheat, or Soybean Shipping Certificate.

The premium for FOB conveyance is payable at the time of invoice.
(12) Load-Out Procedures.
A. Load-Out Procedures Grains —

1. Corn, Wheat, and Soybeans; i S S

and Oats from Chicago and Burns Harbor. An operator of a regular facility has the
obligation of loading grain represented by warehouse receipts or shipping
certificates giving preference to takers of delivery. When an operator of a facility
regular for the delivery of grain receives one or more written loading orders for
loading of grain against canceled warehouse receipts or shipping certificates, the
operator shall begin loading against them within 3 business days following their
receipt. When loadings against written loading orders cannot be completed on the
fourth business day following their receipt, the operator shall continue loading
against such loading orders on each business day thereafter. All warehousemen and
shippers shall outload grain against canceled delivery instruments consecutively
without giving preference of the type of delivery instrument, kind of grain or mode of
transportation. He shall outload all such products in the order in which suitable
transportation, clean and ready to load is constructively placed at his facility by the
holder of the warehouse receipt or shipping certificate, pursuant to bona fide loading


ATTACHMENT.

Attachment 1:

Deletions are [bracketed-with strikethrough] and additions are bold and underlined.
1009.01 Last Day of Trading of Delivery Month — [/Reatarnd] Oats - No trades in
[wheat er] oat futures deliverable in the current month shall be made after the business
day preceding the 15" calendar day of that month. Any contracts remaining open after
the last day of trading must be either:
a) Settled by delivery no later than the seventh business day following the last
trading day.
b) Liquidated by means for a bona fide exchange of futures for the actual cash
commodity, or an over-the-counter transaction, no later than the sixth business
day following the last trading day.

1009.02 Last Day of Trading of Delivery Month-Corn, Wheat, and Soybeans - No
trades in corn, wheat, and soybean futures deliverable in the current month shall be
made after the business day preceding the 15th calendar day of that month. Any
contracts remaining open after the last day of trading must be either:
a) Settled by delivery no later than the second business day following the last
trading day (tender on business day prior to delivery).
b) Liquidated by means of a bona fide exchange of futures for the actual cash
commodity, or an over-the-counter transaction, no later than the business day
following the last trading day.

1038.02 Deoxynivalenol (Vomitoxin) Limit in Wheat - Effective September 1, 2006, a
taker of delivery of wheat shall have the option to request in writing load-out of wheat
which contains no more than 4 (four) parts per million of deoxynivalenol (vomitoxin) . At
the taker’s expense, a determination of the level of vomitoxin shall be made at the point
of load-out by the Federal Grain Inspection Service or by a third party inspection service
which is mutually agreeable to the maker and taker of delivery.

Effective September 1, 2009, a taker of delivery of wheat shall have the option to
request in writing deoxynivalenol (vomitoxin) testing. At the taker’s expense, a
determination of the level of vomitoxin shall be made at the point of load-out by
the Federal Grain Inspection Service or by a third party inspection service which

is mutually agreeable to the maker and taker of delivery. Unit average testing
results of 3 parts per million vomitoxin or below shall be at contract price. Unit
average testing results of 4 parts per million vomitoxin shall be at a 12 cent

discount. Unit average testing results greater than 4 parts per million are not
deliverable.

1042.01 Registration of Grain Warehouse Receipts - In order to be valid for delivery
against futures contracts, grain warehouse receipts must be registered with the official
Registrar and in accordance with the requirements issued by the Registrar. Registration


maximum load-out charge shall not exceed the load-out charge defined in
Regulation 1081.01(11).

3) remove no CBOT registered [/Reatand/er] Oats from the warehouse unless the
warehouse receipts have been previously cancelled by the Registrar’s Office.

4) notify the Exchange immediately of any change in its capital ownership, or any
reduction in net worth of 20 percent or more from the level reported in the last
financial statement filed with the Exchange, or of any change in the physical
condition of the warehouse.

5) make such reports, keep such records, and permit such warehouse visitation as
the Exchange or the Commodity Futures Trading Commission (CFTC) may
require; and comply with all applicable Rules and Regulations of the Exchange
and the CFTC.

6) insure against the contingencies provided for in a standard “All Risks” policy
(including earthquake), in such amounts as required by the Exchange.

7) submit an application for renewal of a declaration of regularity in writing on or
before May 1s every even year.

8) if the Warehouseman leases the warehouse or has entered into some form of
service agreement pursuant to which an agent or contractor performs the daily
operations of the warehouse, Warehouseman remains responsible for
compliance with all duties and conditions of regularity and shall be responsible
for the conduct of its agents or contractors.

2. The Warehouse must be:
1. subject to the prescribed examination and approval of the Exchange.

2. Equipped with standard equipment and appliances for the convenient and
expeditious handling of grains in bulk.

3. The Warehouse and Warehouseman must conform to the requirements of the
Exchange as to location, accessibility and suitability as may be prescribed by the
Rules and Regulations of the Exchange.

AGREEMENTS OF WAREHOUSEMAN

The Warehouseman expressly agrees:


C. Wheat (Toledo and St. Louis delivery). The [wareRhouserman] shipper is not
required to furnish transit billing on wheat represented by [warehouse-receipts]
shipping certificates delivery in Toledo, Ohio, St. Louis, Missouri, East St.
Louis, Illinois, or Alton, Illinois. Delivery shall be flat.

D. Corn See Regulation C1081.01(14)-Billing for Corn futures contracts.
E. Soybeans See Regulation S1081.01(14)-Billing for Soybean futures contracts.

F. Wheat, Corn, Soybeans and Oats (Burns Harbor Delivery). When grain
represented by warehouse receipts/shipping certificates delivered in Burns
Harbor is ordered out for shipment by rail, it will be the obligation of the party
making delivery to protect the Chicago rail rate, if lower, which would apply to the
owner's destination had a like kind and quantity of grain designated on
warehouse receipts/shipping certificates been loaded out and shipped from a
regular warehouse/shipping station located in the Chicago Switching District. If
grain is loaded out and shipped to an industry in the Chicago Switching District,
the party making delivery will protect the minimum, crosstown switch charge in
the Chicago Switching District.

When rail loading orders are submitted, the party taking delivery shall state in
writing if he elects to receive the applicable rail rates from Burns Harbor or
Chicago. If the party taking delivery specifies Burns Harbor, the party making
delivery will load rail cars at the Burns Harbor warehouse/Shipping station and
will not be required to protect the Chicago rates. If the party taking delivery
specifies Chicago rates, the party making delivery will declare on the day that the
grain is ordered out for shipment by rail, the warehouse/shipping station at
which the grain will be made available, which is operated by the party making
delivery and is located either in the Burns Harbor or the Chicago Switching
Districts. If the declared warehouse/shipping station is located in the Chicago
Switching District, the party making delivery will provide only that billing specified
in Regulation 1081.01(14)A.

However, if the declared warehouse/shipping station is located in Burns Harbor
and the rail rate from Chicago or the minimum Chicago crosstown switch charge
requires protection, the party making delivery will compensate the party taking
delivery. The compensation shall be in an amount equivalent to the difference of
the freight charges from Burns Harbor and the freight charges which would be
applicable had the grain been loaded at and shipped from a warehouse/shipping
station located in the Chicago Switching District to the owner's destination.

15)Persons operating regular warehouses or shipping stations shall be subject to the
Exchange's Rules and Regulations pertaining to arbitration procedures, as set
forth in Chapter 6, and, with respect to compliance with Rules and Regulations
pertaining to a warehouse's or shipper's regularity, shall be subject to the


March 29, 2007
Ms. Eileen A. Donovan

Page 7

(v)

4.

Vomitoxin. Vomitoxin remains the most contentious issue in the wheat contract.
Feedback is mixed with a good portion of the industry wanting the vomitoxin
limit to be reduced to 2 parts per million and another good portion of the industry
wanting the vomitoxin limit to remain at 4 parts per million. For the most part,
warehousemen are opposed to lower vomitoxin limits because it becomes risky
for them at load out. The vomitoxin test is notoriously variable, and any time a
car fails vomitoxin testing and must be unloaded, the warehouse’s loading
schedule gets corrupted. Large SRW millers tend to oppose lower vomitoxin
requirements, even though they cannot use 4 parts per million vomitoxin wheat in
milling without blending it with lower vomitoxin wheat. These millers are
concemed that in a high vomitoxin year, there may not be sufficient deliverable
stocks. They also are concerned that such a high vomitoxin year could ultimately
result in farmers growing less SRW wheat. Most small- and mid-sized millers
support lower vomitoxin limits and state they would trade more if taking futures
delivery was a viable alternative for them. Most local traders support lower
vomitoxin limits as a way to assure more responsive calendar spreads. Most
wheat exporters also support lower vomitoxin limits since many export wheat
contracts specify no more than 2 ppm.

One way to address the issue for both sides of this argument is to specify 3 parts
per million vomitoxin for wheat deliveries at par with 4 parts per million
vomitoxin deliverable at a discount. By allowing warehouses to use unit average
vomitoxin testing techniques, they can significantly lower their risk yet still
deliver wheat with average vomitoxin levels no greater than 3 parts per million.
By specifying the discount for 4 parts per million vomitoxin at a rate slightly
above typical cash market discounts (12 cents per bushel discount versus a typical
cash market discount of 10 cents per bushel), the warehouseman will typically
deliver wheat with vomitoxin 3 parts per million or less. However, should a high
vomitoxin year occur, deliverable supplies would not be reduced compared to the
current specification of 4 parts per million. Also, by allowing 4 parts per million
vomitoxin wheat to be delivered at a 12 cent per bushel discount, holders of old
certificates will be allowed to negotiate with the issuing warehouseman to
upgrade their certificates to meet the 3 parts per million vomitoxin requirement by
paying the warehousemen’s cost to upgrade the certificate, not to exceed 12 cents
per bushel. If the warehouseman is not able to upgrade the certificate to 3 ppm,
the holder will retain the right to re-delivery the certificate at a 12 cent per bushel
discount.

There were no opposing views among the CBOT Board of Directors concerning this
proposal.


March 29, 2007
Ms. Eileen A. Donovan

Page 6

Regular warehousemen are not opposed to increased load-out rates but have
concerns about faster load outs and grade testing. The problem is that by the time
car-by-car test results are available, multiple cars have been loaded. If a car
misses grade, it significantly slows the warehouse’s loading ability.
Warehousemen are comfortable with modest increases in load-out rates, but
offered even faster load-out rates if takers specify “unit average” weights and
grades. Currently, takers can request individual car weights and grades or batch
weights and grades. Batch weights and grades refer to one weight and one grade
per five rail cars based on a composite sample. Batch weights and grades are
rarely used in the wheat industry. Instead, unit average weights and grades are
typically used. Unit average weights and grades are based on an entire shipment.
Grades are collected for each car, and one car that misses grade can be
compensated for with another car that exceeds grade. The delivery grade is based
on the average of all cars in the delivery or “unit.” All warehousemen in Toledo
as well as Chicago, Burns Harbor and St. Louis can offer higher load-out rates
under unit average weights and grades.

Currently Toledo warehouses are required to load out at their normal rate of load-
out, which is 25 hopper cars (individual weights and grades) or 35 cars (batch
weights and grades) for rail or 300,000 bushels per day for vessels. Chicago and
St. Louis warehouses are required to load at 25 hopper cars (individual weights
and grades) or 35 hopper cars (batch weights and grades) for rail, 300,000 bushels
for vessels, or 3 barges per day. All but one Toledo warehouse can load 50
hopper cars per day using individual weights and grades and 65 hopper cars per
day using unit average weights and grades. Chicago, Burns Harbor and St. Louis
regular warehousemen cannot increase their load-out rates under individual car
weights and grades and batch car weights and grades, but would be able to load
45 hopper cars per day using unit average weights and grades.

CBOT proposes that Wheat futures takers be given the option to request unit
average weights and grades on load out. Takers could then weigh the trade off
between more consistent weights and grades (by requesting individual car weights
and grades) and faster load out times (by requesting unit average weights and
grades). One Toledo warehouse that cannot make these new load-out rates would
be “grandfathered” in at its current load-out rates, but would be precluded from
issuing more than 800 shipping certificates. In addition, consistent with Corn and
Soybean futures, the proposed revisions provide that Toledo warehouses give
preferences to takers of futures delivery.


orders previously received, and at the loading rates provided in part B of this
Regulation.

2. [Wheatfromtelede-and] Oats from Minneapolis-St. Paul - All warehousemen
shall inload and outload all agricultural products consecutively without giving
preference to the products owned by him over the products of others, and without
giving preference to one depositor over another. He shall inload all such products
consecutively in the order in which they arrive at his warehouse, pursuant to the
inloading orders previously received so far as the warehouse capacity for grain and
grade permits. He shall outload all such products in the order in which suitable
transportation, clean and ready to load is constructively placed at his warehouse by
the holder of the warehouse receipt, pursuant to bona fide outloading orders
previously received, except as provided in part B of this Regulation.

3. It shall be the responsibility of the warehouse receipt or shipping certificate
holder to supply suitable transportation. Hopper cars shall be considered suitable
transportation if they can be sampled by pelican in a manner approved by the
appropriate grain sampling agency. Trucks and non-suitable hopper cars may be
loaded only with the express agreement of the warehouseman.

Constructive placement at a warehouse or shipping station shall be defined as
follows:

1) Rail cars-as defined in the appropriate Railroad Freight Tariff on file with the
Interstate Commerce Commission;

2) Barges-Positioned at an appropriate fleeting service serving the designated
delivery point as defined by the Barge Freight Trading Rules (Affreightment) of
the National Grain and Feed Association;

3) Vessels-in possession of the appropriate Federal Grain Inspection Service
and/or National Cargo Bureau documents certifying readiness to accept load-out
at the designated delivery point.

It shall be the responsibility of the warehouse receipt or shipping certificate holder to
request the warehouseman to arrange for all necessary Federal Grain Inspection
Service and stevedoring service. The warehouse receipt or shipping certificate
holder may specify the stevedoring service to be called. The warehouseman shall
not be held responsible for non-availability of these services.

B. Load-Out Rates for Grain - In the event a regular grain warehouse or shipping
station receives written loading orders for load-out of grain against canceled
warehouse receipts or shipping certificates, the warehouseman or shipper shall
be required to load out grain beginning on the third business day following receipt
of such loading orders or on the day after a conveyance of the type identified in
the loading orders is constructively placed, whichever occurs later. The rate of


March 21, 2007

Re:

NOTICE

BOARD APPROVED CHANGES TO THE CBOT® WHEAT FUTURES
CONTRACT

The Board of Directors at its March meeting has approved the following changes to the CBOT
Wheat futures contract:

1.

2.

Change the delivery instrument from a warehouse receipt to a shipping certificate.

Increase the storage rate for Wheat from 15/100s of one cent per bushel per day
(approximately 4.5 cents per bushel per month) to 16.5/100s of one cent per bushel per
day (approximately 5 cents per bushel per month).

Increase rail load out rates for Toledo regular warehouses from 25 hopper cars to 50
hopper cars for individual weights and grades. Allow takers of delivery to request unit
average weights and grades for wheat load-out. Under unit average weights and grades,
Toledo warehousemen will be required to load out 65 hopper cars per day and Chicago,
Burns Harbor, and St. Louis warehousemen will be required to load out 45 hopper cars
per day. In addition to these changes, Toledo regular warehousemen will be required to
give preference in the load-out lineup to takers of futures delivery.

Lower the vomitoxin limit for par delivery on CBOT Wheat futures from 4 parts per
million to 3 parts per million. Wheat with 4 parts per million will still be allowed to be
delivered at a 12 cent per bushel discount.

Pending CFTC approval, Items 1 though 3 above will be implemented starting with the July
2008 contract and Item 4 above will be implemented starting with the September 2009 contract.
Further details on the implementation of these provisions will follow at a later date.

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

Paul J. Draths
Vice President and Secretary


following the scheduled loading date to the date that the barge is
constructively placed, including both dates, but excluding business days
the shipper meets his minimum daily barge load-out rate. Requests to
cancel loading instructions and reissue receipts/shipping certificates more
than two business days after receipts/shipping certificates are cancelled
are subject to mutual agreement. All fees for re-issuance are payable by
the owner.

8) The shipper shall load water conveyance at the shipping station
designated in the Shipping Certificate. If it becomes impossible to load at
the designated shipping station for three (3) consecutive business days
because of an Act of God, fire, flood, wind, explosion, war, embargo, civil
commotion, sabotage, law, act of government, labor difficulties or other
condition of force majeure, the shipper will arrange for water conveyance
to be loaded at another regular shipping station in conformance with the
Shipping Certificate and will compensate the owner for any transportation
loss resulting from the change in the location of the shipping station. If the
aforementioned condition of impossibility prevails at a majority of regular
shipping stations, then shipment may be delayed for the number of days
that such impossibility prevails at a majority of regular shipping stations. If
conditions covered in this regulation make it impossible to load at the
designated shipping station, the shipper shall notify the Registrar's Office
in writing of such condition within 24 hours of when the condition of
impossibility began.

9) See Regulation C1081.01(12)G(9)-Regularity of Warehouses and Issuers
of Shipping Certificates for Corn futures contracts. See Regulation
$1081.01(12)G(9)-Regularity of Warehouses and Issuers of Shipping
Certificates for Soybean futures contracts.

10)In the event less than eleven shipping certificates of a like grade/quality
are outstanding at a shipping station the owner of all such outstanding
shipping certificates may cancel the shipping certificates and obligate the
shipper to provide a market value at which the shipper will either buy back
all the canceled shipping certificates or sell the balance of Corn or
Soybeans of a like grade/quality to complete a barge loading of at least
55,000 bushels, the choice being at the discretion of the taker of delivery.

13)Location.
A. Corn. See Regulation C1081.01(13)-Location for Corn futures contracts.

No such warehouse or shipping station within the Chicago Switching District shall
be declared regular unless it is conveniently approachable by vessels of ordinary
draft and has customary shipping facilities. Ordinary draft shall be defined as the
lesser of (1) channel draft as recorded in the Lake Calumet Harbor Draft Gauge,


March 29, 2007

Ms. Eileen A. Donovan
Acting Secretary
Commodity Futures Trading Commission
Three Lafayette Center
1155 21* Street, N.W.
Washington, D.C. 20581
Reference File #2777.01
Request for Commission Rule Approval
Dear Ms. Donovan:

(i) The following Request for Commission Rule Approval is submitted pursuant to Section
5(c) of the Commodity Exchange Act and Commission Regulations 40.4 and 40.5.

(ii) | The Chicago Board of Trade (CBOT®) hereby notifies the Commodity Futures Trading
Commission (CFTC) that it intends, with CFTC approval, to amend CBOT Regulations
1009.01, 1009.02, 1038.02, 1042.01, 1043.01, 1043.02, 1056.01, 1081.01, 1083.01 and
1085.01, and CBOT Rulebook Appendixes 10G, 10I and 10J as indicated in the attached
texts (additions bold and underlined; deletions bracketed and struck through).

These amendments will revise CBOT Wheat futures as follows:

1. Change the delivery instrument from a warehouse receipt to a shipping certificate.
Also, consistent with other CBOT futures contracts with shipping certificates as
the delivery instrument, move the last delivery day from seven business days
following the last trading day to the second business day following the last trading
day.

2. Increase the storage rate for Wheat from 15/100s of one cent per bushel per day
(approximately 4.5 cents per bushel per month) to 16.5/100s of one cent per
bushel per day (approximately 5 cents per bushel per month).

3. Increase rail load-out rates for Toledo regular warehouses from 25 hopper cars to
50 hopper cars for individual weights and grades. Allow takers of delivery to
request unit average weights and grades for wheat load-out. Under unit average
weights and grades, Toledo warehousemen will be required to load out 65 hopper
cars per day and Chicago, Burns Harbor, and St. Louis warehousemen will be
required to load out 45 hopper cars per day. In addition to these changes, Toledo
regular warehousemen will be required to give preference in the load-out lineup to
takers of futures delivery.


that all premium charges have been paid on the commodity covered by the certificate, in
accordance with Regulation C1056.01 or Regulation $1056.01, as applicable.

1043.02 Registration of Corn, Wheat, and Soybean Shipping Certificates — Corn,
Wheat, and Soybean Shipping Certificates in order to be eligible for delivery must be
registered with the Official Registrar and in accordance with the requirements issued by
the Registrar. Registration of Corn, Wheat, and Soybean Shipping Certificates shall
also be subject to the following requirements:

a.

Shippers who are regular for delivery may register certificates at any time.
If the shipper determines not to tender the shipping certificate by 4:00
p.m., or by such other time designated by the Exchange, on the day it is
registered, the shipper shall declare the certificate is withdrawn but is to
remain registered by transmitting to the Registrar the certificate number
and the name and location of the shipping plant. The holder of a
registered certificate may cancel its registration at any time. A certificate
which has been canceled may not be registered again.

No notice of intention to deliver a certificate shall be tendered to the
Clearing Services Provider unless said certificate is registered and in
possession of the clearing member tendering the notice or unless a
shipping certificate is registered and outstanding. When a notice of
intention to deliver a certificate has been tendered to the Clearing
Services Provider, said certificate shall be considered to be “outstanding”
until its registration is cancelled.

From his own records, the Registrar shall maintain a current record of the
number of certificates that are registered and shall be responsible for
Posting this record on the Exchange Floor and the CBOT website. The
record shall not include any shipping certificates that have been declared
withdrawn.

When a registered shipper regains control of a registered certificate calling
for shipment from one of his shipping stations, which in any manner
relieves him of the obligation to ship corn or soybeans upon demand of a
party other than himself, the shipper shall by 4:00 p.m. of that business
day, or by such other time designated by the Exchange either cancel the
registration of said certificate or declare that said certificate is withdrawn
but is to remain registered by transmitting to the Registrar the certificate
number and the name and location of the shipping plant, except in the
case where a notice of intention to redeliver said certificate for the shipper
has been tendered to the Clearing Services Provider by 4:00 p.m., or by
such other time designated by the Exchange, of the day that the shipper
regained control of said certificate.

. The Registrar shall not divulge any information concerning the registration,

delivery or cancellation of certificates other than the record posted on the


of [Wheat and] Oat warehouse receipts shall also be subject to the following
requirements:

1. Warehousemen who are regular for delivery may register warehouse receipts at
any time. If the warehouseman determines not to tender the warehouse receipt
by 4:00 p.m. on the day it is registered, the warehouseman shall declare the
receipt has been withdrawn but is to remain registered by transmitting to the
Registrar the warehouse receipt number and the name and location of the
warehouse facility. The holder of a registered receipt may cancel its registration
at any time. A receipt which has been canceled may not be registered again.

2. Except in the case of delivery on the last delivery day of a delivery month, in
which case the warehouse receipt must be registered before 1:00 p.m. on the
last delivery day of the delivery month, the grain warehouse receipt must be
registered before 4:00 p.m. on notice day, the business day prior to the day of
delivery. If notice day is the last business day of a week, grain warehouse
receipts must be registered before 3:00 p.m. on that day.

3. From his own records, the Registrar shall maintain a current record of the
number of receipts that are registered and shall be responsible for posting this
record on the Exchange Floor and the CBOT website. The record shall not
include any receipts that have been declared withdrawn.

4. When a warehouseman regains control of his own registered receipt, the
warehouseman shall by 4:00 p.m. of that business day either cancel the
registration of said receipt or declare that said receipt is withdrawn but is to
remain registered by transmitting to the Registrar the receipt number and the
name and location of the warehouse facility, except in the case where a notice of
intention to redeliver said receipt for the warehouseman has been tendered to
the Clearing House by 4:00 p.m. of the day that the warehouseman regained
control of said receipt.

1043.01 Delivery of Corn, Wheat, and Soybeans by Shipping Certificates -
Deliveries of Corn, Wheat, and Soybeans shall be made by delivery of Shipping
Certificates issued by Shippers designated by the Exchange as regular to issue
Shipping Certificates for Corn, Wheat, and Soybeans using the electronic fields which
the Exchange and the Clearing Services Provider require to be completed. In order to
effect a valid delivery each Shipping certificate must be endorsed by the holder making
the delivery, and transfer as specified above constitutes endorsement. Such
endorsement shall constitute a warranty of the genuineness of the Certificate and of
good title thereto, but shall not constitute a guaranty, by an endorser, of performance by
the issuer of the Certificate. Such endorsement shall also constitute a representation


OF

(List Wheat, Oats or both)

Date
BOARD OF TRADE OF THE CITY OF CHICAGO, INC
Chicago, Illinois

(hereinafter called the “Warehouseman”) owner/lessee*
(Warehouseman Name) (Circle one)

of a warehouse located at hereby
(Address, City, State, Zip)

submits this application to the Board of Trade of the City of Chicago, Inc. (hereinafter
called
“Exchange”) for a Declaration of Regularity to issue Warehouse Receipts/Shipping
Certificates for delivery of upon contracts for future
delivery for a period

(List Wheat, Oats, or both)

beginning on July 1, 20___ and ending Midnight June 30, 20___.

The Warehouseman has a storage capacity of bushels of grain. If
multiple warehouses exist at the location listed above, please indicate the name of the
elevator.

Name of Elevator:

*Please include a copy of the lease or service agreement with application.
Conditions of Regularity

A declaration of regularity, if granted, may be revoked by the Exchange whenever the
following conditions, or any other applicable conditions specified in Regulation 1081.01,
or any other relevant Rules and Regulations are not observed:
41. The Warehouseman must:

1) submit bonds or letters of credit to the Exchange as it may require.

2) submit to the Exchange a tariff listing in detail the rates for the handling and

storage of grain; submit promptly to the Exchange all changes in such tariff; and

publish and display such tariff. The maximum premium/storage rates on Wheat
and Oats shall not exceed the storage rates defined in Regulation 1056.01. The


Exchange's Rules and Regulations pertaining to disciplinary procedures, as set
forth in Chapter 5.

16)Persons operating regular warehouses or shipping stations shall consent to the
disciplinary jurisdiction of the Exchange for five years after such regularity lapses,
for conduct pertaining to regularity which occurred while the warehouse or shipping
station was regular.

17)The Exchange may determine not to approve warehouses or shipping stations for
regularity or increases in regular capacity of existing regular warehouses or
shipping stations, in its sole discretion, regardless of whether such warehouses or
shipping stations meet the preceding requirements and conditions. Some factors
that the Exchange may, but is not required to, consider in exercising its discretion
may include, among others, whether receipts or shipping certificates issued by
such warehouses or shipping stations, if tendered in satisfaction of futures
contracts, might be expected to adversely affect the price discovery function of
futures contracts or impair the efficacy of futures trading in the relevant market, or
whether the currently approved regular capacity provides for an adequate
deliverable supply.

1083.01 Excess or Deficiency in Quantity - In the load-out of grain from an elevator or
warehouse/shipping station, the quantity of gross grain covered by the warehouse
receipt/shipping certificate shall be loaded out, and any excess or deficiency between
the quantity of net grain loaded out and the quantity of net grain covered by the
warehouse receipt/shipping certificate shall be paid for to or by (as the case may be)
the elevator or warehouse/shipping station proprietor or manager at the average
market price on the day of load-out: the buyer to pay storage/premium on the net
weight covered by the warehouse receipt/shipping certificate. In the event that in the
final out-turn there is a shortage in the gross quantity called for in the receipt/certificate,
the net quantity of grain required by the receipt/certificate shall be the factor in
settlement, and any variation therefrom in the net amount of grain loaded out against
the receipt/certificate shall be paid for by the elevator or warehouse/shipping station
proprietor or manager to the owner of the receipt/certificate at the average market
price on the day of load-out. In the load-out of grain the gross quantity of grain, which
includes dockage shall not exceed the net quantity by more than one percent.

1085.01 Application for Declaration of Regularity - All applications by operators of
warehouses for a declaration of regularity under Regulation 1081.01 shall be on the
following form:

WAREHOUSEMAN’S APPLICATION FOR A DECLARATION OF REGULARITY FOR
CONTRACTS FOR FUTURE DELIVERY UNDER THE RULES AND REGULATIONS
OF THE BOARD OF TRADE OF THE CITY OF CHICAGO, INC. FOR THE DELIVERY


March 29, 2007
Ms. Eileen A. Donovan
Page 8

(vi) | The CBOT has not identified any Commission regulations or sections of the Act which
require amendment or interpretation in connection with this proposal.

Questions in this regard may be directed to David Lehman (312/347-3848) or Fred Seamon
(312/347-3808) in the CBOT Business Development Department.

Sincerely,

Paul J. Draths
Vice President and Secretary

b032007


C. Notification to Warehouse/Shippers - The warehouse operator or shipping
station shall load-in and load-out grains in the order and manner provided in
parts A and B of this Regulation, except that his obligation to load-out grain to
a given party shall commence no sooner than three business days after he
receives cancelled warehouse receipts/shipping certificates and written
loading orders from such party, even if such party may have a conveyance
positioned to accept load-out of grain before that time. If the party taking
delivery presents transportation equipment of a different type (rail, barge, or
vessel) than that specified in the loading orders, he is required to provide the
warehouse operator with new loading orders, and the warehouse operator
shall be obligated to load-out grain to such party no sooner than three
business days after he receives the new loading orders. Written loading
orders received after 2:00 p.m. (Chicago time) on a given business day shall
be deemed to be received on the following business day. Warehouse
receipts/shipping certificates cancelled after 4:00 p.m. shall be deemed to be
cancelled on the following business day. Written loading orders must be
received no later than two business days after warehouse receipts/shipping
certificates are cancelled. If the owner decides against loading out grain
within two business days after receipts/certificates are cancelled, he may
notify the warehouseman/shipper that warehouse receipts/shipping
certificates are to be reissued. In the case of rice[;] or oats, [e-wheat,] if the
warehouseman is notified by 12:00 noon, re-issued receipts shall be
deliverable by 4:00 p.m. the following business day. Requests to re-issue
receipts/shipping certificates more than two business days after
receipts/shipping certificates are cancelled are subject to mutual agreement.
All fees for re-issuance are payable by the owner.

The warehouseman/shipper shall transmit to the Registrar by 11:00 a.m. the
name, location of warehouse/shipping facility, and number of delivery
vessels/barges/rail cars constructively placed that day. The Registrar shall
maintain a current record of the number of delivery vessels/barges/rail cars
constructively placed and shall be responsible for posting this record on the
Exchange Floor and the CBOT website.

D. Storage and Premium Charges - Storage payments on [wheat-and] oats to be
shipped pursuant to loading orders shall cease on the tenth business day
after suitable transportation is constructively placed for load-out or loading is
complete, whichever is earlier. Premium charges for corn, wheat, and
soybeans to be shipped pursuant to loading orders shall cease on the
business day loading is complete.

—. Records - All warehousemen and shippers shall keep adequate permanent
records showing compliance with the requirements of this Regulation. Such
records shall at all times be open for inspection by the designated official or
Officials of the contract market.


owners may not apply in a particular situation or may be open to negotiation between
the parties. Care has been taken in the preparation of this outline, but there is no
warranty or representation expressed or implied by the Chicago Board of Trade or its
member firms as to the accuracy or completeness of the material herein. In particular,
CBOT rules and regulations may be revised from time to time. Accordingly, current rules
and regulations, if applicable, should be consulted when there is a question about load-
out. Please be advised that the U.S. Warehouse Act, as amended, or a state law may
also apply to, or govern, a particular situation. If you have legal questions concerning
load-out, we recommend that you consult your legal counsel.

APPENDIX 101 - LETTER OF CREDIT STANDARDS (For Corn, Wheat, Soybeans,
South American Soybeans and Ethanol Only)

CBOT Regulation 1081.01 and other CBOT regulations require, as a condition for
regularity, that issuers of shipping certificates for certain commodities must file a bond
and/or designated letter of credit with sufficient sureties in such sum and subject to such
conditions as the Exchange may require. The Exchange has determined that the
following requirements shall apply to such letters of credit.

1. The regular firm is required to secure a letter of credit, naming the Chicago Board
of Trade as its beneficiary, for 100% (120% for the South American Soybeans) of
the current market value of the shipping certificates issued. The address of the
primary office for the presentation of demand must be located in the United
States.

2. The regular firm is required to monitor the value of the outstanding certificates
issued using the futures spot month settlement price. Whenever the amount of
the letter of credit falls below 80% (100% for South American Soybeans) of the
current market value for certificates issued, the regular firm must increase the
amount of the letter of credit, or obtain a new letter of credit, for an amount equal
to 100% (120% for South American Soybeans) of the current market value of
outstanding certificates, by 5:00 p.m. (Chicago Time) on the first business day
following the relevant futures settlement.

3. Prior to additional shipping certificates being issued, the regular firm must
increase the amount of the letter of credit, or secure a new letter of credit, for
100% (120% for South American Soybeans) of the current market value of all
shipping certificates which are outstanding as well as all shipping certificates
which will be issued.

4. The Exchange will accept letters of credit only from banks with a Moody’s
Investor Service counter party credit rating of A or above or a Standard and
Poor’s short-term counter party rating not lower than A-


The letter of credit must be irrevocable, it must provide for payment within the
time specified by the Exchange, and it must be able to be drawn upon
unconditionally.

. The letter of credit must be in the form approved by the Exchange.

. The expiration date of a letter of credit may not occur during any relevant futures

delivery cycle.

APPENDIX 10J - LETTER OF CREDIT STANDARDS (For Agricultural

Products except Corn, Wheat, and Soybeans)

CBOT Regulation 1081.01, and amended Regulations 1181.01, 1291.01, and 3704.01
require, as a condition for regularity, that Warehousemen must “file a bond and/or
designated letter of credit with sufficient sureties in such sum and subject to such
conditions as the Exchange may require.”

The following is a list of the recommended conditions with respect to a firm obtaining a
letter of credit to meet the financial requirements of regularity:

a.

The regular firm is required to secure a letter of credit, naming the Chicago Board
of Trade as its beneficiary, for such sum and subject to such conditions the
Exchange may require.

The Exchange will accept letters of credit only from banks with a Moody’s
Investors Service counterparty credit rating of A or above or a Standard and
Poor’s short-term counterparty rating not lower than A-2.

The letter of credit must be irrevocable, must provide for payment within the time
specified by the Exchange, and must be able to be drawn upon unconditionally.

. The letter of credit must be in the form approved by the Exchange.

The expiration date of a letter of credit may not occur during any relevant futures
delivery cycle.


water location within the Toledo, Ohio Switching District. The party making delivery
must declare within one business day after receiving [warehouse-+eceipts] shipping
certificates and loading orders the water location at which wheat will be made
available.

Any additional expense incurred to move delivery grain from an off-water elevator
into water facilities shall be borne by the party making delivery; PROVIDED that the
party taking delivery presents water equipment clean and ready to load within fifteen
calendar days from the time the grain has been made available.

Official weights and official grades as loaded into the water equipment shall govern
for delivery purposes.

Delivery in the St. Louis-East St. Louis or Alton Switching Districts must be [in
store“in regular-elevaters] by shipping certificates at requiar shipping stations
providing barge loading facilities and maintaining water depth equal to the average
draft of the current barge loadings in the St. Louis-East St. Louis and Alton barge
loading districts.

D. Soybeans. See Regulation S1081.01(13)-Location for Soybean futures contracts.
(14) Billing

A. Wheat, Corn, Soybeans and Oats (Chicago delivery). The Chicago
warehouseman/shipper is not required to furnish transit billing on grain
represented by warehouse receipt/shipping certificate deliveries in Chicago,
Illinois. Delivery shall be flat.

B. Oats (Minneapolis, St. Paul delivery).

1) When oats represented by warehouse receipts delivered in Minneapolis or St.
Paul are ordered out for shipment by rail, it shall be the obligation of seller to
furnish, no later than when cars are placed or constructively placed at the
elevator, to the party taking delivery, inbound Freight Bills (rail tonnage or
order equivalent truck or barge tonnage) protecting the applicable
proportional rate applicable to Chicago from the warehouse in which the grain
is located. The Freight Bills shall be for the kind and quantity of the
commodity designated by the warehouse receipt and must permit such
commodity to be shipped at the minimum proportional rate applicable to
Chicago effective as of the date of shipment from point of origin shown by the
Freight Bill.

a) Delivery at Minneapolis. When delivery is made at an elevator within the
Minneapolis Switching District, such Freight Bills must permit one further
free transit stop at interior transit points or be accompanied by a check to
cover one such transit stop.


March 29, 2007
Ms. Eileen A. Donovan

Page 4

Changing the wheat delivery instrument to shipping certificates would likely
increase the deliverable supply of wheat and the number of deliveries, causing
futures prices to decrease relative to cash prices and encourage convergence
between cash and futures. Regular warehousemen handle multiple commodities
and are reluctant to tie up their facilities with too much of any one commodity.
With a shipping certificate, the warehouseman can source grain at interior
locations and issue shipping certificates on that grain without tying up valuable
storage space at his regular facility. With wheat, a warehouseman may be
reluctant to issue too many warehouse receipts, particularly going into the corm
and soybean harvest, due to lack of space at his facility. However, he would be
much more likely to issue shipping certificates on wheat held at interior locations
because the wheat shipping certificates would not affect his other merchandising
businesses.

The warehouseman would still be required to perform in the same manner should
a shipping certificate get cancelled for load out as when warehouse receipts get
cancelled for load out. Thus, for a buyer, there should be no difference. The
buyer still gets grain loaded out under the same schedule and at the same location
as with the warehouse receipt system.

Also, changing the delivery instrument to a shipping certificate will enable wheat
deliveries to be conducted on the electronic delivery system. As a result,
outstanding warehouse receipts will be converted to shipping certificates by the
CBOT Registrar’s Office.

This change is supported by a majority of the market participants that were
canvassed by the CBOT over the past few months.

Increase the storage rate from 15/100s of one cent per bushel per day
(approximately 4.5 cents per bushel per month) to 16.5/100s of one cent per
bushel per day (approximately 5 cents per bushel per month). Most survey
respondents acknowledged higher storage costs in the cash market and supported
increasing the storage rate for wheat. There is concer that storage rates that are
too high will attract too many outstanding certificates and make futures market
spread adjustments slower to react to cash market developments. Many who hold
this concern still support higher rates, but want to assure futures storage rates are
consistent with cash market rates.


(3) The proprietor or manager of such warehouse or shipping station shall be in
good financial standing and credit, and shall meet the minimum financial
requirements and financial reporting requirements set forth in Appendix 4E. No
warehouse or shipping station shall be declared regular until the person
operating the same files a bond and/or designated letter of credit with sufficient
sureties, or deposits with the Exchange, treasury securities, or other collateral
deemed acceptable to the Exchange, in such sum and subject to such conditions
as the Exchange may require. Any such sums shall be reduced by SEC haircuts,
as specified in SEC Rule 15c3 -1(c)(2)(vi), (vii) and (viii). If the
warehouseman/shipper deposits treasury securities or any other collateral with
the Exchange, it must execute a security agreement on a form prescribed by the
Exchange.

(4) Such warehouse or shipping station shall be provided with modern improvements
and appliances for the convenient and expeditious receiving, handling and
shipping of grain in bulk.

(5) The proprietor or manager of such warehouse or shipping station shall comply
with the system of registration of warehouse receipts or shipping certificates as
established by the Exchange, and shall furnish accurate information to the
Exchange regarding all grain received and delivered by the warehouse or
shipping station on a daily basis, and that remaining in store at the close of each
week, in the form prescribed by the Exchange.

(6) Safeguarding Condition of Grain in Warehouses.

a) The Board of Trade shall designate an agency for registration of public
warehouse receipts, and only public warehouse receipts registered with such
agency shall be within the provisions of paragraph (b) following.

b) Whenever in the opinion of the operator of the warehouse any grain stored in a
public warehouse under his jurisdiction should be loaded out in order to protect
the best interests of the parties concerned, such operator shall notify the agency
giving the location and grades of such grain. The agency shall immediately notify
an appropriate grain inspection service who shall at once proceed to the
warehouse in which the grain is stored and examine it in conjunction with the
Superintendent of such warehouse. If the grain inspection service agrees with
the Superintendent that the grain should be moved, it shall so notify the Registrar
of the Chicago Board of Trade. If the grain inspection service does not agree with
the Superintendent that the grain should be moved, the operator of the
warehouse shall have a right to appeal to the Business Conduct Committee of
the Board of Trade. If on such appeal the Business Conduct Committee shall
agree with the Superintendent that the grain should be moved, the Business
Conduct Committee shall so notify the Registrar of the Board of Trade, and the
warehouse receipts covering the above specified lot or lots of grain shall no
longer be regular for delivery on Board of Trade future contracts. Upon receiving


ascertaining the stocks of all kinds of grain which may be on hand at any time.
The Exchange shall have the authority to determine the quantity of grain in the
elevators and to compare the books and records of the warehouse with the
records of the Exchange.

(10) The proprietor or manager of a regular warehouse or shipping station shall give
assurance that all grain received in and shipped out of such warehouse shall be
weighed under the supervision of an agency approved by the Exchange.

(11) The warehouseman or shipper operating such warehouses or shipping

stations shall not engage in unethical or inequitable practices, and shall comply
with all applicable federal or state statutes, rules or regulations.

All warehousemen and shippers are and shall be and remain subject to the Rules,
Regulations and Rulings of the Board of Trade of the City of Chicago on all subjects and
in all areas with respect to which the U.S. Department of Agriculture does not assert
jurisdiction pursuant to the

U.S. Warehouse Act, as amended.

A regular warehouseman or an owner of warehouse receipts can make delivery in a
strike bound elevator. The taker of delivery is liable for all storage charges. However,
where the owner of warehouse receipts in a strike bound elevator delivered against
futures contracts has a bona fide bid for like receipts in a strike free elevator and
decides to load the grain out or sell his receipts, the strike bound warehouseman has
the option:

a)

b)

c)

to provide that same quantity and like quality of grain in store in another regular
warehouse, not on strike, in the same delivery market, or

to provide that same quantity and like quality of grain in store at another location
on mutually acceptable terms, or

if no initial agreement can be reached as provided above, the strike bound
warehouseman must buy his warehouse receipts back at the bid price in store for
that same quantity and like quality of grain in a strike free elevator in the same
delivery market or he has the alternative of proceeding as in (a) above. The bid
(which must be a basis bid versus futures) referred to in this paragraph must be
good for a minimum period of one hour and must be tendered in writing to the
strike bound warehouseman between 1:30 p.m. and 4:30 p.m. on.a business day
and prior to 8:30 a.m., but not before 7:30 a.m., on the following business day.

The warehouseman must respond to the bid as outlined above within the time
period during which the bid is alive.

Should the warehouseman question the validity of the bid, the question shall be
referred to a Standing Committee which shall have been appointed on an annual


March 29, 2007
Ms. Eileen A. Donovan

Page 3

Over the past few months, the CBOT Business Development Department has held a
Wheat Industry Meeting, conducted an industry survey, and conducted multiple
individual interviews with market participants in an attempt to gather ideas that will
improve the efficiency of the CBOT Wheat futures delivery process and the performance
of the contract. Over 100 industry participants attended the industry meeting
representing a broad cross-section of the industry. All industry meeting attendees were
issued a survey to provide additional feedback. All regular warehouses as well as the
major SRW wheat milling firms, several small- to medium-sized SRW wheat milling
firms, and several local traders responded to the survey. Individual interviews also were
held with a representative cross-section of market participants. All of this feedback
contributed to the current proposals, which are discussed individually below.

1. Change the delivery instrument from a warehouse receipt to a shipping
certificate. Wheat, along with oats and rough rice, uses a warehouse receipt as its
delivery instrument. Shipping certificates are the delivery instruments for corn,
soybeans, soybean meal, soybean oil, ethanol, and South American soybeans. A
warehouse receipt represents title to grain in a regular warehouse. Thus, each
outstanding warehouse receipt is backed by grain in the regular warehouse. A
shipping certificate requires a regular warehouseman to perform on load-out just
as with a warehouse receipt; however, a shipping certificate does not require the
regular warehouseman to have the grain represented by outstanding shipping
certificates in his facility.

Because actual grain need not be in the regular warehouseman’s facility for him
to issue a shipping certificate, the Exchange requires the warehouseman to file a
bond and/or letter of credit for the value of outstanding certificates. A
warehouseman may also secure outstanding shipping certificates with stocks of
grain, as he currently does with warehouse receipts. Since shipping certificates
can be delivered on CBOT’s electronic delivery system and warehouse receipts
cannot, clearing firms and regular firms could realize cost savings and other
benefits if the SRW delivery instrument were changed to a shipping certificate.


c. The warehouseman/shipper informs the owner of the time of loading
completion and the release time of the conveyance to the carrier.

d. The warehouseman/shipper must advise the owner of any load-out difficulties.
Inclement weather may delay loading.

e. The owner should be familiar with the tariff of the warehouse/shipping station
where the load-out is to occur.

f. Any expense for making the grain available for loading on the Illinois Waterway
will be borne by the party making delivery, provided that the taker of delivery
constructively places barge equipment clean and ready to load within five (5)
business days following the scheduled loading date of the barge on the lilinois
Waterway. if the taker’s barges are not constructively placed within five (5)
business days following the scheduled loading date of the barge on the Illinois
Waterway, the taker shall pay the shipper an amount not to exceed 30/100 of
one cent per bushel per day multiplied by the number of calendar days from the
fifth business day following the scheduled loading date to the date that the
barge is constructively placed, including both dates, but excluding business
days the shipper meets his minimum daily barge load-out rate. Requests to
cancel loading instructions and re-issue receipts/shipping certificates more than
two business days after receipts/shipping certificates are cancelled are subject
to mutual agreement. All fees for re-issuance are payable by the owner.

6. Final Settlement of All Charges By Invoice

a. The owner pays the warehouseman/shipper storage/premium charges that
have accumulated up to and including the 10th business day after constructive
placement of the conveyance or the date of loading completion, whichever is
earlier, for wheat and oats, or up to and including the date of loading for corn
and soybeans. If the owner paid storage/premium charges when he
surrendered the cancelled warehouse receipt/shipping certificate he now pays
storage/premium charges that have accumulated since that time as invoiced.

b. The owner pays the warehouseman/shipper for the FGIS service and the
stevedoring company for stevedoring service as invoiced. The owner is
responsible for charges incurred for stevedoring service, except, all fees for
stevedoring services to load corn and soybeans into barges are to be paid by
the issuer of the Corn or Soybean Shipping Certificate.

c. With some exceptions for Burns Harbor delivery, the owner pays all
transportation costs, including switching charges and demurrage, if any, to the
appropriate transportation company.

*/ The outline provided above is intended to serve only as a general guide to grain load-
out procedures; certain of the discussed obligations of the warehouseman/shipper and


as maintained by the Corps of Engineers, U.S. Army, minus one (1) foot, or (2)
20 feet.

Delivery in Burns Harbor must be made "in store" in regular elevators or by
shipping certificate at regular shipping stations providing water loading facilities
and maintaining water depth equal to normal seaway draft of 27 feet.

In addition, deliveries of grain may be made in regular elevators or shipping
stations within the Burns Harbor Switching District PROVIDED that:

(a) When grain represented by warehouse receipts or shipping certificates is ordered
out for shipment by a barge, it will be the obligation of the party making delivery
to protect the barge freight rate from the Chicago Switching District (i.e. the party
making delivery and located in the Burns Harbor Switching District will pay the
party taking delivery an amount equal to all expenses for the movement of the
barge from the Chicago Switching District, to the Burns Harbor Switching District
and the return movement back to the Chicago Switching District).

If inclement weather conditions make the warehouse or shipping station located
in the Burns Harbor Switching District unavailable for barge loadings for a period
of five or more calendar days, the party making delivery will make grain available
on the day following this five calendar day period to load into a barge at one
mutually agreeable water warehouse or shipping station located in the Chicago
Switching District; PROVIDED that the party making delivery is notified on the
first day of that five-day period of inclement weather that the barge is available
for movement but cannot be moved from the Chicago Switching District to the
Burns Harbor Switching District, and is requested on the last day of this five day
calendar period in which the barge cannot be moved.

(b) When grain represented by warehouse receipts or shipping certificates is ordered
out for shipment by vessel, and the party taking delivery is a recipient of a split
delivery of grain between a warehouse or shipping station located in Burns
Harbor and a warehouse or shipping station in Chicago, and the grain in the
Chicago warehouse or shipping station will be loaded onto this vessel; it will be
the obligation of the party making delivery at the request of the party taking
delivery to protect the holder of the warehouse receipts or shipping certificates
against any additional charges resulting from loading at one berth in the Burns
Harbor Switching District and at one berth in the Chicago Switching District as
compared to a single berth loading at one location. The party making delivery, at
his option, will either make the grain available at one water warehouse or
shipping station operated by the party making delivery and located in the
Chicago Switching District for loading onto the vessel, make grain available at
the warehouse in Burns Harbor upon the surrender of warehouse receipts or
shipping certificates issued by other regular elevators or shipping stations located
in the Chicago Switching District at the time vessel loading orders are issued, or
compensate the party taking delivery in an amount equal to all applicable
expenses, including demurrage charges, if any, for the movement of the vessel


March 29, 2007
Ms. Eileen A. Donovan

Page 2

(iii)

(iv)

4. Lower the vomitoxin limit for par delivery on CBOT Wheat futures from 4 parts
per million to 3 parts per million. Wheat with 4 parts per million will still be
allowed to be delivered at a 12 cents per bushel discount.

Subject to CFTC approval, the CBOT intends to implement Items 1 through 3 above
starting with the July 2008 contract and Item 4 above starting with the September 2009
contract. The CBOT has announced these proposed changes publicly by Notice dated
March 21, 2007 (copy attached).

Concerning the proposed revisions identified in Items 1 through 3, the CBOT notes that
there is open interest in July 2008 Wheat futures. However, for reasons detailed in
section (iv) below, the CBOT submits that the existence of open interest should not be an
impairment to the Exchange’s implementation plan. The revision identified in Item 4
would not affect any contracts with open interest. (Wheat futures for September 2009
and beyond have not been listed for trading.)

The CBOT Board of Directors approved these changes pursuant to the CBOT Charter,
Article VIII and the CBOT Bylaws, Article IX.

The referenced revisions are designed to enhance the efficiency and performance of
CBOT Wheat futures. The following provides background detail concerning the
operation, purposes and effects of these revisions.

Because wheat is available around the world in many different varieties with multiple
quality levels, wheat futures trade has historically been domestic rather than global. Over
20 different wheat futures contracts exist around the world, most of which are very local
in scope. The CBOT’s soft red winter wheat (SRW) contract is the most liquid wheat
contract in the world. On a metric ton basis, the SRW futures contract constitutes over 66
percent of the world’s wheat futures trade.

Because of its liquidity, the SRW contract is the world’s de facto standard pricing
mechanism and price discovery tool. However, the delivery points and deliverable
supply for this product are domestic, with Chicago and Toledo, OH functioning as the
primary delivery points for delivery of soft red winter, hard red winter and hard spring
wheat; and St. Louis, MO is also approved for delivery of soft red winter wheat only.
This dichotomy between the SRW contract’s global price discovery function and its
domestic delivery specifications is likely the leading factor in the divergences between
SRW futures prices and domestic soft red winter wheat cash prices that are observed
from time to time. This fact also helps explain why SRW open interest is almost six
times larger than total U.S. soft red winter wheat production.


1) that all grain tendered in satisfaction of futures contracts shall be weighed by an
Official Weigher. An Official Weigher shall be a person or agency approved by
the Exchange.

2) that all warehouse receipts/shipping certificates to be tendered in satisfaction
of futures contracts will be registered with the Registrar of the Exchange.

3) to abide by all of the Rules and Regulations of the Exchange relating to the
warehousing of commodities deliverable in satisfaction of futures contracts and
the delivery thereof, including the duties set forth in Regulation 1081.01, as
applicable.

4) to designate a clearing agent in Chicago authorized to act upon the
Warehouseman’s behalf in matters pertaining to Warehouse Receipts.

5) that the Exchange may revoke the Warehouseman’s declaration of regularity, if
granted, for any breach of these agreements.

6) that the signing of this application constitutes a representation that the conditions
of regularity are complied with and will be observed during the life of the
declaration of regularity and, if found to be untrue, the Exchange shall have the
right to revoke the declaration of regularity immediately.

7) to be subject to the Exchange's Rules and Regulations, the disciplinary
procedures set forth in Chapter 5, and the arbitration procedures set forth in
Chapter 6, and to abide by and comply with the terms of any disciplinary decision
imposed upon the Warehouseman or any arbitration award issued against it
pursuant to the Exchange's Rules and Regulations.

8) to consent to the disciplinary jurisdiction of the Exchange for five years after
regularity lapses for conduct which occurred while the Warehouseman was
regular.

Please be advised that, pursuant to Regulation 1081.01 (17), the Exchange may
determine not to approve warehouses for regularity or increases in regular capacity of
existing regular warehouses, in its sole discretion, regardless of whether such
warehouses meet the conditions of regularity specified in Regulation 1081.01. Some
factors the Exchange may, but is not required to, consider in exercising its discretion
may include, among others, whether warehouse receipts/shipping certificates issued
by such warehouses, if tendered in satisfaction of futures contracts, might be expected
to adversely affect the price discovery function of the Wheat or Oats futures contracts or
impair the efficacy of futures trading in Wheat or Oats, or whether the currently
approved regular capacity provides for an adequate deliverable supply

(Name)


2)

3)

4)

b) Delivery at St. Paul. When delivery is made at an elevator within the St.
Paul Switching District, such Freight Bills must permit one further free
transit stop at interior transit points, or be accompanied by a check to
cover such transit stop, and in addition must also permit movement to
industries within the switching limits of Minneapolis at no greater cost than
the maximum switching charges between industries located with the
switching limits of Minneapolis.

In lieu of the Freight Bills or order equivalent tonnage specified above, seller
may furnish to the party taking delivery "short-rate" Freight Bills or make
compensation as specified in Section (b).

a) "Short-rate" Freight Bills (which otherwise conform to the requirements of
this Regulation). "Short-rate" Freight Bills shall be accompanied by a
certified check, or other acceptable payment, in an amount equal to the
difference between the freight charges which would be incurred in
shipping the quantity of the commodity from Minneapolis to Chicago
(based on the proportional rate applicable in connection with such "short-
rate" Freight Bills) and the freight charges for such shipment based on the
minimum proportional tariff rate applicable in connection with Freight Bills
other than "short-rate" Freight Bills showing shipment from points of origin
as of the same date as the "short-rate" Freight Bills furnished.

b) Compensation in Lieu of Freight Bills or order equivalent tonnage. A
certified check or other acceptable payment may be substituted for Freight
Bills provided it is in an amount equal to the difference between the freight
charges which would be incurred in shipping the commodity from
Minneapolis to Chicago based on the flat tariff rate effective as of the date
of loading for rail shipment and the charges for such shipment based on
the minimum proportional tariff rate effective as of the same date.

Due Bills issued by the Western Weighing and Inspection Bureau may be
used when necessary in lieu of Freight Bills that conform to the provisions of
this Regulation. Such Due Bills may be surrendered by the seller to the party
loading out delivery grain by rail when such Freight Bills are not yet available
because of the unloading of the commodity into an elevator during the last
few days of the delivery month or on the delivery of "Track" grain. Such Due
Bills shall specify the date, origin and rate of the Freight Bills in lieu of which
they are issued and shall be completely filled out except for the signature.

The term Freight Bills as used in this Regulation means the recorded inbound
paid Freight Bills, authorized duplicates thereof, or tonnage credit slips,
conforming to the rules and regulations of Western Trunk Line Tariff No. 331-
Z, Fred Ofcky, Agent, ICC No. A-4774, amendments thereto or reissues
thereof.


Exchange Floor and the CBOT website, except that he shall issue a daily
report showing the total number of certificates registered as of 4:00 p.m.,
or such other time designated by the Exchange, on each trading day of
the week. In addition to the information posted on the Exchange Floor and
the CBOT website, this daily report will show the names of shippers
whose certificates are registered and the location of the shipping stations
involved. This report shall not include any shipping certificates that have
been declared withdrawn.

1056.01 Storage Rates for [Wheat-and] Oats and Premium Charges for Corn,
Wheat, and Soybeans -

To be valid for delivery on futures contracts, all warehouse receipts and shipping
certificates covering [Wheatand] Oats in regular store or Corn, Wheat, and Soybeans
under obligation for shipment must indicate the applicable storage rate or premium
charge. No warehouse receipts or shipping certificates shall be valid for delivery on
futures contracts unless the storage rates or premium charges on such grain shall have
been paid up to and including the 18th calendar day of the preceding month, and such
payment endorsed on the warehouse receipt or shipping certificate. Unpaid
accumulated storage rates and premium charges at the posted rate applicable to the
warehouse or shipping station where the grain is stored or under obligation for shipment
shall be allowed and credited to the buyer by the seller to and including date of delivery.

lf storage rates or premium charges are not paid on-time up to and including the 18th
calendar day preceding the delivery months of March, July and September and by the
first calendar day of each of these delivery months, a late charge will apply. The late
charge will be an amount equal to the total unpaid accumulated storage rates or
premium charges multiplied by the "prime interest rate" in effect on the day that the
accrued storage rates or premium charges are paid plus a penalty of 5 percentage
points, all multiplied by the number of calendar days that storage or premium is
overdue, divided by 360 days. The term "prime interest rate" shall mean the lowest of
the rates announced by each of the following four banks at Chicago, Illinois, as its
“prime rate": Bank of America-lllinois, JP Morgan Chase & Co., Harris Trust & Savings
Bank, and the Northern Trust Company.

The [sterage-rates-on-Reatand] premium charges on Corn and Soybeans for delivery
shall not exceed 15/100 of one cent per bushel per day. The premium charges on

Wheat for delivery shall not exceed 16,.5/100 of one cent per bushel per day.

The storage rates on Oats for delivery shall not exceed 13/100 of one cent per bushel
per day.

1081.01 Regularity of Warehouses and Issuers of Shipping Certificates -
Warehouses or shipping stations may be declared regular for the delivery of grain with
the approval of the Exchange. Persons operating grain warehouses or shippers who
desire to have such warehouses or shipping stations made regular for the delivery of
grain under the Rules and Regulations shall make application for an initial Declaration
of Regularity on a form prescribed by the Exchange prior to May 1 of an even year, fora


(7)

(8)

(9)

c)

qd)

such notice, either from the grain inspection service, or from the Business
Conduct Committee, the Registrar shall notify the holder, or holders, or their
agents, together with the Chairman of the Business Conduct Committee, of the
total quantity of the grade of grain in question (selecting the oldest registered
warehouse receipt for such grain first, then such additional registered warehouse
receipts in the order of their issuance as may be necessary to equal such total
quantity of grain). When this information reaches the Chairman of the Business
Conduct Committee he shall appoint a Committee consisting of five disinterested
handlers of cash grain, which Committee shall meet at once and after taking into
consideration various factors that establish the value of the grade of the receipts
held by such owner or owners, shall determine the fair value of the grain, which
price shall be that to be paid by the operator. If the price offered is not
satisfactory, a Committee appointed by the Chairman of the Business Conduct
Committee (at the request of such owner), shall procure other offers for such
grain, and such offers shall be immediately reported to the owner or his agent. If
the owner refuses to accept any such offers, he shall have the two following
business days to order and furnish facilities for loading such grain out of store,
and during this period the warehouseman shall be obliged to deliver the grain
called for by the warehouse receipts, but not more than three (3) days may
elapse after notification by the Registrar to the holder of the receipt before
satisfactory disposition shall have been made of the grain, either by sale to the
operator or by the ordering out and furnishing facilities to load the same, provided
the amount of such grain does not exceed 100,000 bushels in any one elevator.
If the amount of grain in question exceeds 100,000 bushels, the owner, or
owners, of the warehouse receipts shall be allowed forty-eight hours of grace
over and above the before mentioned three days for each 100,000 bushels in
excess of the first 100,000 bushels.

In the event that the holder of the warehouse receipt, or his agent, fails to move
the grain or make other satisfactory disposition of same within the prescribed
time, it shall be held for his account, and any loss in grade sustained shall
likewise be for his account.

Nothing in the foregoing provisions shall be construed as prohibiting the
warehouseman from fulfilling contracts from other stocks under his control.

The proprietor or manager of such warehouse shall promptly, by the proper
publication, advise the trade and the public of any damage to grain held in store
by it, whenever such damage shall occur to an extent that will render it unwilling
to purchase and withdraw from store, at its own cost, all such damaged grain.

The Board shall be assured that the operator or manager of the warehouse or
shipping station will agree to conform to Regulation 1049.03.

The proprietor or manager of such warehouse shall permit the Exchange, at any
time, to examine the books and records of the warehouse, for the purpose of