Below are several important recent contract specifications updates:
- The starting time for the new contract is now 8:50 am (NY Time). Additionally, the ethanol contract will stop trading at 12:05 pm.
- The contract months for ethanol still parallel sugar, but in order to avoid confusion in the trading pit (since ethanol will be trading in the same pit alongside sugar), the months listed will be February, April, June, September, and November. The options contract will list the same months as the futures.
- Nine countries of origin are now listed: the Bahamas, Brazil, Costa Rica, El Salvador, Guatemala, Jamaica, Nicaragua, Panama, and the United States.
Global ethanol output is estimated to more than double by 2010, and NYBOT’s ethanol contract underscores the increasing role this cleaner-burning gasoline additive has in the world. Since there is no clear international reference price for ethanol, NYBOT seeks to establish such a benchmark with its contract.
Ethanol’s contract symbol is “XA” and calls for free on board (FOB) vessel delivery of 7,750 U.S. gallons of biomass-derived, undenatured, anhydrous ethanol meeting specific quality criteria as described in the contract rules.
Ethanol is an alcohol-based alternative fuel produced by fermenting and distilling starch crops that have been converted into simple sugars. It can be produced from any biological feedstocks such as sugar cane and corn. Most commonly used to increase octane and improve the emissions quality of gasoline, it has the potential to reduce dependence on oil.
U.S. federal legislation already includes provisions encouraging the use of ethanol. Internationally, the Kyoto Protocol, a worldwide agreement to impose binding agreements on developed nations to limit their greenhouse gas emissions, encourages the use of bio-fuel additives such as ethanol.
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, NYBOT offers an expanding range of agricultural and financial products. Information about the New York Board of Trade can be found at www.nybot.com and www.nybotlive.com.
