National Commodity & Derivatives Exchange (NCDEX) Launches Futures Trade In Arabica Coffee And Robusta Coffee

NCDEX had added another product to its list of futures contracts with the launch of Arabica and Robusta Coffee futures contracts today. The contracts were launched from NCDEX in Mumbai amid various players of the coffee value chain.

The initial contracts available for trading will be for expiry dates in May 2005, July 2005 and September 2005. The basis for trade for Arabica futures is Plantation A coffee ex warehouse Hassan (Karnataka) exclusive of all taxes. Basis for Robusta cherry clean bulk is ex warehouse Kushalnagar (Karnataka) exclusive of all taxes.

Speaking on the occasion of the launch, Mr. Narendra Gupta, Chief Business Officer NCDEX said that coffee was one of the sectors growing at a furious pace. He expected the momentum to spill on to the futures market as well.

Mr Shrikant Subbarayan, Head – Products added that Coffee was the second most traded commodity in the world and that he expected NCDEX to do brisk business in coffee.

Meera Manoj KUMAR, AVP – Products mentioned that Coffee as a commodity is well integrated with the global markets. Annualized volatility in coffee is about 40 %. Till date, coffee traders in India were using LIFFE & NYBOT as their trading platform. Now they will have an Indian platform to trade. She stated that NCDEX is a national commodity exchange and that all participants in the market could expect a fair deal.