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The Colorado Commodity Exchange plans to launch a new marijuana futures contract that will be traded in US dollars and reflect the value of organically grown marijuana within designated regions. The current plan is to introduce the contract with listing of the April 1st 2015 contract.
The contract specification, subject to regulatory approval is:
Marijuana Futures
Contract size: 1 contract = 20 tonnes
Pricing basis: Free on Board (FOB) at points in the Colorado region.
Delivery months: January, March, May, July, and November
Minimum price fluctuation: USD0.10 per tonne
Daily price limit: USD30.00 per tonne above or below the previous settlement price.
Last trading day: Trading day preceding the fifteenth calendar day of the delivery month
First notice day: One trading day prior to the first delivery day
Final notice day: First trading day after the last trading day of the delivery contract
Deliverable specifications: Contract deliverable grades shall be based on primary grade standards as established by the Colorado Weed Commission.
• Non-commercially clean Colorado Red with maximum dockage of 8%; all other specifications to meet THC percentages of 10% to 25%; or
• Deliverable at a USD5.00/net tonne premium – commercially clean No. 1 Colorado Red
Delivery regions: Par delivery may be made at any registered elevator that is located in the Colorado Non-par delivery may be made at any registered elevator located in Washington State
Speculative position limits (in spot month only): 2,000 contracts
Trading hours: Pre-open: 18:30. Opening of market: 19:00. Close of market: 13:15.
