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AJC Update from MGEX

March 15, 2011, Issue 7
In this issue
:: The United States Warehouse Act
:: About MGEX
Greetings!

It is an exciting time to be part of the Apple Juice Concentrate (AJC) industry. 

The March 15 issue of the Federal Register contains a proposal by the USDA's Farm Service Agency (FSA) to add processed agricultural products, such as apple juice concentrate, to the list of agricultural products for which warehouse licenses may be issued under the United States Warehouse Act (USWA).  This marks a milestone step in our quest to launch a risk management tool for the AJC industry. 

A summary of the Federal Register notice is below, along with information on how you can submit your comments.   
The United States Warehouse Act

The USWA allows the Secretary of Agriculture to license warehouse operators who store certain agricultural products.  FSA is proposing to create a voluntary USWA licensing program for processed agricultural products, such as  AJC, stored in climate controlled cooler and freezer warehouses.  Such licensed warehouses would have the authority under the USWA to issue federal negotiable warehouse receipts.  

The FSA licensing proposal is available for review

MGEX is encouraging all interested parties to submit comments in one of the following ways:
  • email - [email protected] 
  • fax - (202) 690-3123   
  • mail - Patricia Barrett, Warehouse Operations Program Manager, FSA, United States Department of Agriculture, STOP 0553, 1400 Independence Avenue, SW., Washington, DC 20250-0553
About MGEX 

MGEX is a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO) established in 1881.  It is currently researching and designing an Apple Juice Concentrate contract with the assistance of the AJC industry.  MGEX is the only market for Hard Red Spring Wheat (HRSW), National MGEX logoCorn Index (NCI), National Soybean Index (NSI), Hard Red Winter Wheat Index (HRWI), Hard Red Spring Wheat Index (HRSI) and Soft Red Winter Wheat Index (SRWI) futures and options.  To learn more about MGEX visit www.mgex.com.

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I would once again like to encourage you to voice your comments on the FSA licensing proposal listed in the Federal Register by submitting your comments.

Look for future MGEX mailings containing more information on the AJC contract.  If you have any questions or suggestions, please feel free to email us anytime.     

Sincerely,

Rita Maloney
Director, MGEX