"NYBOT's new European delivery alternative addresses the changing environment in the global marketplace and is a great addition to the world of coffee futures," said Mr. Leo Velez, Assistant Vice President of Operations at Refco. "Our customers in Europe enjoy the convenience of having their coffee delivered within the European continent, and this also allows them to achieve increased efficiency and cost savings."
NYBOTs Coffee "C" futures contract is used by members of the world coffee trade to price and hedge price risk on arabica coffees (which make up over 60% of global coffee production), and by speculative investors who wish to trade coffee price movement. The contract allows for delivery of coffees from 19 Central American, South American, African and Asian countries.
On July 11, 2001, NYBOT established Antwerp, Belgium and Bremen/Hamburg, Germany, as approved delivery points for its Coffee "C" tenderable coffees. The ports became effective with the December 2002 contract, which began trading July 16, 2001.
Deliveries in each of the two European ports are subject to a discount of 1.25 cents per pound (US), which is identical to the discounts applied in the existing ports of Miami, Florida, and New Orleans, Louisiana; deliveries in the port of New York City are at par.
The New York Board of Trade (NYBOT) is the parent company of the Coffee, Sugar and Cocoa Exchange, Inc. (CSCE) and the New York Cotton Exchange (NYCE). Through its two exchanges and their subsidiaries and divisions, NYBOT offers an expanding range of agricultural, currency and index products. Information about the New York Board of Trade can be found at www.nybot.com.
