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  • QA 130
    Question:
    What are the quality parameters for coffee traded under the New York 'C' Contract?
    Background:
    Where can one find the quality standards that apply to the New York 'C' Contract for coffee? Particularly details of the faults or imperfections that are permitted.
    Asked by:
    Extension Adviser - Colombia
     
    Answer:

    Grading standards are found in the Nybot Rulebook, itself freely available from www.nybot.com. For ease of reference we quote relevant sections of the current version below:

    Effective with respect to March 2007 Delivery Month and All Delivery Months listed thereafter: 

    Coffee "C" shall consist of one (1) growth, in sound condition, free from all unwashed flavors in the cup, of good roasting quality, and of bean size and color in accordance with criteria established by the Exchange. No delivery shall be permitted of coffee containing more than fifteen (15) full imperfections below the basis for the respective growth, except that in the case of Colombian coffee no delivery shall be permitted of coffee containing more than ten (10) full imperfections below the basis for the respective growth. Imperfections shall be established on the basis of a grading schedule established by the Exchange.

    (1) The coffee is sound and free from all unwashed flavors in the cup;
    (2) The coffee is of good roasting quality;
    (3) The coffee is of such bean size that (i) fifty percent of the coffee sampled screens fifteen or larger, and (ii) no more than five percent of the coffee sampled screens below fourteen;
    (4) The coffee is greenish and free of foreign odors; and
    (5) The coffee contains no more than fifteen (15) full imperfections below the basis,except that in the case of Colombian coffee the maximum number of full imperfections below the basis shall be ten.

    Schedule of Imperfections. 

    (1) The following constitute one (1) full imperfection: 

    one full black;
    one full sour;
    one pod or cherry;
    five shells;
    five broken or cut beans;
    two to five partly black or partly sour beans, depending upon the extent to which each bean is discolored or spoiled;
    five floaters;
    three sticks smaller than one-half inch;
    one stick ranging in size from one-half inch to one inch;
    three stones passing through a screen size below twelve;
    one stone passing through a screen size no smaller than twelve;
    two to three hulls or husks, depending upon size;
    ten bored beans; and
    two to three parchments, depending upon size.

    (2) The following constitute two (2) full imperfections: 

    one stick ranging in size from one inch to two inches; and
    one stone passing through a screen size no smaller than sixteen.
     
    (3) The following constitute three (3) full imperfections: 

    one stick larger than two inches; and
    one stone passing through a screen size over twenty.

    (4) Any additional non-coffee item shall be one full imperfection. 

    Schedule of Bases. 

    For purposes of these procedures, the bases of various growths of coffee are as follows:

    (1) Coffee of Guatemala, Salvador, Mexico, Costa Rica, Nicaragua, Honduras, Kenya,Tanzania, Uganda, Papua New Guinea, Peru, Venezuela, Dominican Republic, Burundi,Ecuador, India, Rwanda and Panama: * eight (8) full imperfections; and

    (2) Coffee of Colombia: * thirteen (13) full imperfections.

    Decision of Graders. 

    The grading panel shall determine by majority vote whether the coffee graded satisfies the minimum standards for coffee deliverable under the Coffee "C" Futures Contract. For purposes of determining whether the coffee graded has no more than the maximum number of imperfections, the Exchange shall take the average of the number of imperfections calculated by each grader.

    We suggest you also read topic 01.01.03 (Grading and classification) of the Guide.

    NB: In January 2007 The New York Board of Trade (NYBOT) merged with  InterContinental Exchange (ICE) - see ICE Futures US at www.theice.com

    Posted 11 January 2007
     

    Related chapter(s):
    Related Q & A:
    Q&A 016, 107, 117