In early December, the IntercontinentalExchange (ICE) in the US announced that the Board of Directors of ICE Futures US had approved the addition of Brazil as a deliverable origin for the ‘C’ futures contract.
The addition of Brazilian Arabica will become effective beginning with the March 2013 contract, with Brazilian Arabica at a differential of 9 cents under par, a move that has been welcomed in some parts of the industry, but not in others, and one that has been the subject of ongoing debate for a number of years.
The ‘C’ contract currently permits delivery of Arabica coffee from 19 countries. In May, however, ICE Futures US published an exchange notice requesting views from market participants about whether Brazil Arabica should be deliverable for the ‘C’ contract.
Then, at a meeting on October 13, after full consideration of comments received, the exchange’s Coffee Committee agreed to recommend to the Board of Directors the adoption of the Rule amendments necessary to add Brazil as a deliverable origin.
The Board of Directors approved the Rule amendments when they met on December 9th.
For more information see the forthcoming January 2011 issue of Coffee & Cocoa International.