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Commodity: increase price premiums for physical deliveries of certain types of arabica coffee

18/01/2024
Source : ORISHAS FINANCE
Categories: Raw materials

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The New York Stock Exchange announced on Tuesday, January 16, that the Intercontinental Exchange (ICE) will increase price premiums for physical deliveries of certain types of Arabica coffee at the expiration of the exchange's futures contracts, including for Colombian beans.

In a note to the market, ICE said that as of the expiration of the contract in March 2026, the price differentials for coffee deliveries from Colombia, Kenya, Costa Rica, and Guatemala will be changed. According to the ICE, deliveries of Colombian coffee would experience a premium of 10 cents per pound compared to the current premium of 4 cents per pound compared to futures contracts. Coffee from Kenya and Guatemala will also benefit from a price increase of 10 cents compared to the futures prices. Both origins are currently delivered to pairs.

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