Market News & Headlines >> CME Declares Force Majeure
Futures Exchange operator, CME Inc., on Wednesday afternoon declared Force Majeure effective immediately for corn and soybean shipping stations because a majority of facilities on the Illinois River were unable to load barges due to high water levels and/or flooding.
The declaration allows the delay of contracted corn and soybean deliveries. The Illinois River grain terminals are the delivery points for CBOT corn and soybean futures.
Under CME rules, if conditions make it impossible to load at a majority of regular shipping stations, shippers may delay shipments for as long “as such impossibility prevails at a majority of regular stations”.
CME Inc. last invoked Force Majeure provisions for corn and soybean shipping stations on April 25, 2013, also due to flooding on the Illinois River, and they remained in effect until May 8, 2013.