* Brazil has been wanting to sell to ICE for years
* Guatemala, Colombia oppose Brazil's to be deliverable
* Final decision to accept sits with board of ICE (Recasts and adds details, comment from ICE)
Reuters
October 14, 2010
NEW YORK - Brazil, the world's top coffee producer, took a step this week toward its goal of selling higher-quality coffee beans to ICE Futures U.S. for inclusion in the world's benchmark coffee futures contract.
The ICE Coffee Committee recommended to the exchange on Wednesday that it should allow washed and semi-washed coffee produced in Brazil to be delivered to the ICE Futures U.S. (ICE.N) "C" contract, the global benchmark.
The recommendation follows a proposal placed under consideration in May.
Brazil's coffee industry has pushed for years for this opportunity, which will provide the country with another selling opportunity. But coffee groups in other producing nations including Colombia and Guatemala oppose the idea.
Both those countries produce high-quality washed arabica beans, and say Brazilian beans could depress prices and hurt the "C" contract as a hedging tool. [ID:nN27132926] [ID:nN27132926]
The board of directors of ICE Futures U.S. will now consider the recommendation of the committee, comprised of roasters and traders. Trade sources said the board will make its decision in an undisclosed time, trade sources said.
An ICE spokesman said the committee reached a recommendation to the board of directors of ICE, but would not confirm what this was or when the Board of ICE Futures U.S. will make a final decision.
"The Committee reached a recommendation that will be considered as part of the independent decision-making process of the Board of ICE Futures U.S.," ICE spokesman Lee Underwood said in an email to Reuters.
"While the issue is pending action by the board, the exchange will not provide further details on the recommendation, or additional comments on the process."
---
(Reporting by Marcy Nicholson in New York and Sarah McFarlane in London; Editing by David Gregorio)
* Guatemala, Colombia oppose Brazil's to be deliverable
* Final decision to accept sits with board of ICE (Recasts and adds details, comment from ICE)
Reuters
October 14, 2010
NEW YORK - Brazil, the world's top coffee producer, took a step this week toward its goal of selling higher-quality coffee beans to ICE Futures U.S. for inclusion in the world's benchmark coffee futures contract.
The ICE Coffee Committee recommended to the exchange on Wednesday that it should allow washed and semi-washed coffee produced in Brazil to be delivered to the ICE Futures U.S. (ICE.N) "C" contract, the global benchmark.
The recommendation follows a proposal placed under consideration in May.
Brazil's coffee industry has pushed for years for this opportunity, which will provide the country with another selling opportunity. But coffee groups in other producing nations including Colombia and Guatemala oppose the idea.
Both those countries produce high-quality washed arabica beans, and say Brazilian beans could depress prices and hurt the "C" contract as a hedging tool. [ID:nN27132926] [ID:nN27132926]
The board of directors of ICE Futures U.S. will now consider the recommendation of the committee, comprised of roasters and traders. Trade sources said the board will make its decision in an undisclosed time, trade sources said.
An ICE spokesman said the committee reached a recommendation to the board of directors of ICE, but would not confirm what this was or when the Board of ICE Futures U.S. will make a final decision.
"The Committee reached a recommendation that will be considered as part of the independent decision-making process of the Board of ICE Futures U.S.," ICE spokesman Lee Underwood said in an email to Reuters.
"While the issue is pending action by the board, the exchange will not provide further details on the recommendation, or additional comments on the process."
---
(Reporting by Marcy Nicholson in New York and Sarah McFarlane in London; Editing by David Gregorio)
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