CONTRACT SPECIFICATION

QUALITY STANDARDS

As per the specifications for CBOT Soybean Oil traded on the CBOT Exchange.

Crude soybean oil must meet the classification requirements and standards set by the CBOT exchange found in the rules and regulations for the specific type of specification:

• Not more than 3.0% moisture and impurities.
• It must have a lighter green color than standard ‘A’ and, when refined and bleached, produce a refined and bleached oil not darker than 3.5 times the color of the color reference in the Lovibond scale.
• The oil must be refined with a loss not exceeding 5% and determined by the ‘neutral oil’ method.
• The oil must have a flash point of no less than 250 degrees F, determined by the closed cup method.
• The oil must not contain 1.5% of saponifiable matter (no moisture and volatile).

No lower-grade oil will be delivered upon expiration of the contract in futures trading. A higher grade may be delivered at the contract price unless the loss during refining is less than 5% according to the ‘neutral oil’ method, in which case the additional cost of market price at the time of unloading will be paid for each 1% below the 5% loss (the segments) with a maximum credit of 4.5%.

The methods of AOCS (American Oil Chemists’ Society) will be followed with samples and analyses for all tests, except for the determination of the oil color, which is certified by the National Soybean Processors Association.