NYBOT establishes european delivery points for coffee "C" contract. (Transportation News).
"We are always looking at new ways to enhance how our products are traded on the Exchange," said Mark Fichtel, president and c.e.o. of NYBOT.
"The addition of these European ports will allow operators in Europe, which is the largest geographical market for our Coffee "C" tenderable coffees, to make optimal use of this instrument. We look forward to further innovations with our Coffee "C" contract, and I commend the members of the European Coffee Federation and our Coffee Committee on their diligence and hard work."
Deliveries in each of the two ports will be subject to a discount of 1.25 cents per pound, which is identical to the discounts applied in the existing ports of Miami, Florida, and New Orleans, Louisiana; deliveries in the port of New York City are at par. The changes to the contract rules providing for the 1.25 cent per pound discount will also become effective with the December 2002 contract.
Additional ports, including Trieste, may be considered at a later date.
NYBOT's Coffee "C" futures contract is used by members of the world coffee trade to price and hedge price risk on Arabica coffees (which make up over 60% of global coffee production), and by speculative investors who wish to trade coffee price movement. The contract allows for delivery of coffees from 19 Central American, South American, African and Asian countries.
NYBOT is the parent company of the Coffee, Sugar and Cocoa Exchange, Inc. (CSCE) and the New York Cotton Exchange (NYCE).
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|Publication:||Tea & Coffee Trade Journal|
|Article Type:||Brief Article|
|Date:||Nov 20, 2001|
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