ZCE White Sugar
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ZCE white sugar futures trade on the Zhengzhou Commodity Exchange (ZCE). They were launched on January 6, 2006[1].
Each ZCE white sugar futures contract represents 10 tons of deliverable 1st grade white sugar, which is defined in accordance with Exchange standard Q/ZSJ002-2005, while substitutions at differentials that meet ZCE delivery rules are also good for delivery, and its delivery date is set as the twelfth trading day of the contract month[2].
Each ZCE white sugar futures contract is subject to a margin rate equivalent to 6 percent of contract value (e.g., 2303.4 yuan = 3839 yuan [SR901 last price on May 22, 2008] x 10 [tons/contract] x 6 percent) as well as a trading fee of 4 yuan (RMB) / contract.
ZCE white sugar futures contract was the most actively traded (in terms of volume) and second largest (in terms of turnover) futures contract on ZCE in 2007, with 90,936,110 contracts traded (+54.96 percent YOY) and turnover amounting to 3,524 billion yuan (+49.93 percent YOY), followed by ZCE strong gluten wheat futures' 77,956,702 contracts and 1,513 billion yuan, respectively.
One of the reasons for high activity is the relatively small size of both producers and commercials in China's sugar industry. In China, white sugar is made from sugar cane, which is grown in Guangxi, Yunnan, Guangdong, and Hainan, or sugar beets in Xinjiang, Heilongjiang, and Inner Mongolia[3].
In the first four months of 2008, trading volume of ZCE white sugar futures contract set five new highs, with 2,758,044 contracts traded most recently on April 16, 2008[4].
| ZCE White Sugar futures | ||
|---|---|---|
| Exchange | Zhengzhou Commodity Exchange | |
| Settlement | Physically delivered | |
| Trade Unit | 10 tons / lot | |
| Point Value | 10 yuan (RMB) | |
| Tick Value | 10 yuan (RMB) | |
| Contract Months | Jan, Mar, May, Jul, Sep and Nov | |
| Last Trading Day | The tenth trading day of the contract month | |
| Note: This contract is electronic ONLY -- no open outcry | ||
| No Open Outcry | No Electronic Market | |
| Trading Hours | N/A | 9:00-11:30 a.m. 1:30-3:00 p.m. |
| Ticker Symbol | N/A | SR |
| Price Limits | N/A | 4% above or below the previous trading day's settlement price |
References
- ↑ History of ZCE. Zhengzhou Commodity Exchange. Retrieved on May 22, 2008.
- ↑ White Sugar Futures Contract Specs. Zhengzhou Commodity Exchange. Retrieved on May 22, 2008.
- ↑ GAIN Report Number: CH5031. USDA Foreign Agricultural Service. Retrieved on June 26, 2008.
- ↑ The Trading Volume of White Sugar Futures Contracts on ZCE Hit a New High. Zhengzhou Commodity Exchange. Retrieved on May 22, 2008.
