LIFFE To Introduce Revised Quality Criteria For Robusta Coffee Futures From 1 February 2000

As previously announced, the London International Financial Futures and Options Exchange (LIFFE) will implement revisions to the quality criteria for its benchmark Robusta Coffee Futures contract from 1 February 2000. On 26 January 1999 LIFFE announced the revision for all delivery months from March 2000 onwards. The revised criteria concern the way in which mould is to be assessed during grading of samples submitted to the Exchange. The new criteria make a distinction between coffee beans which have the majority (i.e. 50% or more) of their surface area covered in mould and those that are only partially covered (i.e. less than 50%). Partially covered beans will be ascribed a nominal "defective" value in the defect count but, in addition, each sample submitted for grading will also be subject to a further assessment for mould that is separate from the defect count. Under this separate assessment, a sample of coffee will be graded not tenderable if it has more than 5 fully mouldy or 10 partially mouldy beans, or any combination thereof, such that the total exceeds the equivalent of 5 fully mouldy beans per 500g. Paul Akroyd, Chairman of LIFFE's Commodity Advisory Group (Coffee) said; "Following extensive research and consultation with the Exchange's members and other customers, these changes have been introduced to ensure that LIFFE's coffee quality criteria more accurately reflect today's standards in the commercial market."