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  • 8.8-FUTURES MARKETS-SINGAPORE EXCHANGE LTD - THE SGX ROBUSTA COFFEE CONTRACT

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  • Singapore Exchange Ltd - the SGX Robusta Coffee Contract

     
     
    Launched in April 2010 this contract moved to the Singapore Exchange Ltd in January 2011.

    The interesting aspect is the option to effect delivery in different locations but to date activity has been modest

    SGX Coffee is a physical delivery futures contract, traded in 5 metric tons per lot of Robusta Coffee with specific quality standards defined by the Exchange. There are two trading windows for the contract capturing both Asian and European trading hours: T session: 1000 hrs to 1900 hrs and the T+1 session: 2000 hrs to 0200 hrs (next day).

    Delivery will be made via Warehouse Receipts representing coffee stored in bonded warehouses in Ho Chi Minh City, Vietnam or Singapore. This is of course an interesting aspect but nevertheless it remains to be seen whether this venture will be more successful than others that have ceased trading, like for example the arabica and robusta contracts that were traded in the past at Indian exchanges and the failed attempts in New York to establish a viable robusta contract.

    For contract details visit www.sgx.com and go to products then commodities then robusta coffee futures.