MCX starts Robusta coffee beans trading

MCX starts Robusta coffee beans trading
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First Published: Mon, Jan 29 2007. 10 18 PM IST
Updated: Mon, Jan 29 2007. 10 18 PM IST
Multi Commodity Exchange of India Ltd (MCX), the country’s biggest commodity bourse, began trading in Robusta coffee futures in partnership with Euronext.liffe.
MCX is offering three, bi-monthly contracts in the bitter-tasting Robusta beans, used by makers of instant coffee such as Nestle SA, the exchange said.
The contract will be linked to prices on the Euronext.liffe, Europe’s second-largest derivatives exchange, and will trade up to 11.55pm India time, the Mumbai-based exchange said.
“With evening trading, traders will be able to cover their price exposure at the same time as others in the global coffee market,” managing director Jignesh Shah said in a statement.
MCX signed an agreement with Euronext.liffe in August under which the Indian bourse can trade futures contracts for Robusta coffee and white sugar based on Euronext.liffe’s futures prices. India is the world’s sixth-biggest producer of coffee and exports almost 80% of the production.
The application for starting the trade had been with the Forwards Market Commission for over a month and the regulator had sought the opinion of the board.
Though another exchange had begun coffee futures, besides issues of delivery, closure of trade in the evening when major international exchanges like Liffe and New York Board of Trade (Nybot) began trade led to its failure.
Output may total 288,000 metric tonne in September 2007, lower than the 300,300 tonne forecast in July, the Coffee Board had said on 20 December. bloomberg
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First Published: Mon, Jan 29 2007. 10 18 PM IST
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