STANDARD CONTRACTS

Trading Rules for the purchase and sale of soybean meal is established by NOPA (1997). They determine the following:

STANDARD OF QUALITY

The standard of quality shall be the Soybean Meal of fair merchantable quality conforming to standard definitions and standard specifications of the Association, as set forth in these Trading Rules.

STANDARD DEFINITIONS

A. Soybean Meal is ground soybean cake, ground soybean chips, or ground soybean flakes. A name descriptive of the process of manufacture, such as expeller, hydraulic, or solvent extracted shall be used in the brand name. It shall be designated and sold according to its protein content.

B. Solvent Extracted Soybean Flakes is the product obtained after extracting part of the oil from soybeans by the use of hexane or homologous hydrocarbon solvents. It shall be designated and sold according to its protein content.

STANDARD SPECIFICATIONS

A. Soybean Flakes and 44% Protein Soybean Meal are produced by cracking, heating, and flaking soybeans and reducing the oil content of the conditioned product by the use of hexane or homologous hydrocarbon solvents. The extracted flakes are cooked and marketed as such or ground into meal. Standard specifications are as follows:

B. Soybean Flakes and High Protein or Solvent Extracted Soybean Meal are produced by cracking, heating, and flaking dehulled soybeans and reducing the oil content of the conditioned flakes by the use of hexane or homologous hydrocarbon solvents. The extracted flakes are cooked and marketed as such or ground into meal. Standard specifications are as follows:

(*As determined by Buyer and Seller at time of sale)

C. Any of the above meal products may contain a non-nutritive inert, non-toxic conditioning agent to reduce caking and improve flowability, in an amount not to exceed that necessary to accomplish its intended effect and in no case to exceed 0.5% or 10 lbs. per ton by weight of the total meal product. The name of the conditioning agent must be shown as an added ingredient.

EXPORT TRADING RULES

1. Application of Rules The rules are to serve as a guide only for transactions. It is under-stood that the parties to such transactions are free to adopt, modify or disregard these Rules.

2. Minimum Blending Procedures for Export Meal Blended At Ports Only soybean hulls, soybean mill run and soybean mill feed as defined in Rule 2, Section 2 of the NOPA Meal Trading Rules may be blended with soybean meal prior to the point of automatic mechanical sampling.

The equipment and procedures used for blending must provide a blended meal of uniform quality representative of the sales contract terms immediately prior to the point of entry of the soybean meal into the hold of the vessel.

3. SAMPLING OF SOYBEAN MEAL (At Vessel Loading Facilities)

A. Sampling of soy-bean meal shall be done by an automatic mechanical sampler located in a spout or at the discharge of a belt conveyor, as appropriate. The sampler shall be designed to cut an increment from the entire cross section of the meal stream perpendicular to the flow, at a location where the meal is flowing freely and at a uniform rate, in order to obtain the most representative sample of the meal flow. If the sampler is located in a spout, the spout slope must be 45 degrees or more from horizontal, and the flow must not be choked. When the diverter, or pelican, is stationary between cuts on either side of the meal stream, the opening shall be sealed to prevent dust from entering.

B. The sampler system shall be located at a point beyond which no blending or addition to the product may be introduced prior to its being loaded onto the vessel.

C. The activation of the sampler shall be regulated by an adjustable timer. When the average meal-flow rate through the sampler is less than 800 tons per hour, a sample, or cut, shall be taken for every five tons or less of meal flow. When the flow rate is between 800 and 1200 tons per hour, a sample shall be taken for every eight tons or less of meal flow. When the flow rate is 1200 tons per hour or greater, a sample shall be taken for every 12 tons or less of meal flow. A minimum of 10 samples shall be taken during the loading of any one vessel.

D. The diverter opening for cross-cut samples, and swing-type samplers in which the diverter moves about a horizontal shaft (where the entire length of the diverter opening passes through the stream at the same speed) shall be of uniform width in the range of 5/16" to 7/8". For rotary-type samplers, in which the diverter moves about a vertical shaft and passes through the stream similar to a swinging door (with the outer end of the diverter moving at a higher speed than the inner end), the diverter opening width shall be a minimum of 5/16" at the end nearest the pivot, and shall increase in width in proportion to the distance from the pivot point. In all cases, the diverter shall cut the meal stream at an average speed of approximately 100 feet per minute.

E. The sample taken by the automatic sampler may be reduced in size by one or more mechanical dividers, but the reduced sample must still be representative of the meal passing the sampler. The accuracy of the divider shall be equal in performance to a Jones or Boerner type divider. To comply with contract specifications, the entire sample may be further reduced through a Jones or Boerner divider or its equivalent, and then each portion of the sample must be placed in an official NOPA soybean meal sample bag [a 4-mil polyethylene bag, whirl-pak type, closure at top with flat wire tape and, if desired, heat seal; bag to be 5 1/2 inches wide by 12 1/2 inches long, tubular with heat seal at bottom, nonsterile, NOPA logo and official sample statement printed across bottom 6 inches of bag in NOPA brown ink (PMS-469). A minimum of 5 folds is required before closing wire tabs. In addition, 3 inches of 1/2" wide "tamper resistant," white tape (No. 7380 Secure Mark) must be applied perpendicular to the fold and across the wire tabs on either end of bag closure. A gummed label must be affixed to the side of the bag opposite to the side which contains the NOPA logo. This label should not exceed 4 inches in width or 4 inches in length and must contain the following information as required by the NOPA Soybean Meal Trading Rules: commodity; shipper; origin plant; barge/vessel/car #/truck ID; shipping date; invoice no.; destination. Label may also include shipper's and/or NOPA logo(s), if desired. This bag must be shipped in another pouch or box, not as is.] and properly identified.

F. An automatic sampler system manufactured and installed in accordance with the requirements stated in these rules shall be considered NOPA approved upon completion of the following:

(i) Written certification of the installation by the NOPA Designated Licensed Professional Engineer on NOPA Form UCI-1 stating that the automatic sampler and mechanical divider installation meets the requirements set forth under thee rules. Certifications in effect prior to January 1, 1985, are exempted from this requirement.

(ii) Semi-annual written certification to NOPA by the operator of the vessel loading facility that the sampler is in good working order, and will be properly maintained and operated when an official method of sampling under these rules is required by the terms of the sales contract (Form SCV-2).

(iii) Receipt by NOPA of copies of the Designated Licensed Professional Engineer's certification (Form UCI-1), and subsequent operator's semi-annual certification (Form SCV-2). A copy of both of these certificates shall be maintained by the operator of the facility and made available to users of the facility upon request.

G. Certification of Automatic Sampler Systems:

(i) Any new installation, modification or equipment replacement to the sampling system shall require on-site examination by the NOPA Designated Licensed Professional Engineer and written certification by the engineer on Form UCI-1.

(ii) An automatic sampler which was installed and certified on Form UCI-1 prior to January 1, 1985, by a Corporate Officer of one of the following Automatic Sampler Manufacturers:

1. CEA Carter-Day Company Minneapolis, MN
2. Denver Equipment Div./Joy Mfg. Colorado Springs, CO
3. Gamet Manufacturing Company Minneapolis, MN
4. Gustafson Incorporated Dallas, TX
5. InterSystems, Inc. Omaha, NE

or by the Official Designated Licensed Professional Engineer and has not been modified since that date, are the only exceptions to the certification requirements in paragraph (a) above.

H. In order to determine whether automatic samplers and mechanical dividers meet the requirements set forth in these rules, manufacturers of these devices desiring preliminary approval shall submit detailed drawings of them to NOPA, well in advance of final sale and installation at a facility desiring NOPA Certification.. This will permit NOPA and their Designated Licensed Professional Engineer to evaluate the devices regarding their suitability for certification, and to approve them. The following automatic sampler manufacturers are exempt from this requirement by reason of their samplers and dividers having been previously approved:

1. Gamet Manufacturing Minneapolis, MN
2. Gustafson Incorporated Dallas, TX
3. InterSystems, Inc. Omaha, NE

NOTICE:

The NOPA Designated Licensed Professional Engineer is:

Bredow Associates, Inc.
215l North Hamline Avenue
Roseville, MN 55113-4226
Attention: Paul F. Bredow
Telephone: (612) 636-2935
FAX: (612) 636-0191

4. Weighing of Soybean Meal (At Vessel Loading Facilities) The scales located at a vessel loading facility shall be considered NOPA-approved upon the completion of the following:

Semi-annual certification on a form provided by NOPA and shown as Form C of these rules that the scales used in the weighing of soybean meal which is being transferred to a vessel have been inspected by an appropriate public or sworn weighmaster within the previous six (6) month period. Form SCV-3.

Note: This revised form is effective for installations after January 1, 1985.

There are a number of contracts that may be used to purchase soybean meal. GAFTA has several Feedingstuffs Contracts that are used for soybean meal.