CSCE REVISES DELIVERY RULES IN SUGAR CONTRACT

CSCE REVISES DELIVERY RULES IN SUGAR CONTRACT

The Coffee, Sugar and Cocoa Exchange said Friday it had amended the rules for the delivery of sugar against the raw sugar No. 11 futures contract.

''To encourage the timely loading of vessels for sugar No. 11 deliveries once the vessels have been made available for loading, the board adopted a fee which is to be paid by the deliverer to the receiver, in addition to the normal demurrage, for vessels that are on demurrage for more than 15 days," the exchange said in a statement."This fee is based on the demurrage rates as specified in the Charter Party when the vessel is chartered by the receiver, but is to be paid in addition to the demurrage rate by the deliverer to the receiver.

''The fee would first be applicable for the 16th day a vessel is on demurrage in an amount equal to 50 percent of the demurrage rate, and this rate would be paid through the 30th day of demurrage. For all days a vessel is on demurrage after the 30th day, the fee increases to 100 percent of the demurrage rate."

The rule change will become effective with the May 1997 contract and all delivery months thereafter upon receipt of Commodity Futures Trading

Commission approval, the CSCE said.