ICE U.S. Coffee "C" Arabica

From MarketsWiki
Jump to: navigation, search
ICE wiki logo.jpg

ICE U.S. Coffee "C" Arabica futures is the world benchmark contract for Arabica coffee. The contract prices physical delivery of exchange-grade green beans from one of 19 countries of origin in a licensed warehouse in one of several ports in the U.S. and Europe, with stated premiums/discounts for ports and growths.

Uses

Dried Coffee "C" Arabica seeds "beans" are roasted, ground, and brewed to make coffee. The two most important species of coffee economically speaking are Coffea Arabica (Arabica coffee) - which accounts for over 70% of world production - and Coffea Canephora (Robusta coffee). Two other species which are grown on a much smaller scale are Coffea Liberica (Liberica coffee) and Coffea Dewevrei (Excelsa coffee).[1]

Data Quotes

ICE offers data quotes on a subscription basis.[2]

Coffee C ® Arabica Futures
Trading Screen Product Name Coffee "C" Futures
Trading Screen Hub Name NYCC
Contract Symbol KC
Contract Size 37,500 pounds
Price Quotation Cents and hundredths of a cent up to two decimal places
Contract Series March, May, July, September, December
Minimum Price Fluctuation 5/100 cent/lb., equivalent to $18.75 per contract.
Settlement Physical Delivery
Grade/Standards/Quality A Notice of Certification is issued based on testing the grade of the beans and by cup testing for flavor. The Exchange uses certain coffees to establish the "basis". Coffees judged better are at a premium; those judged inferior are at a discount.
Daily Price Limit None
Deliverable Origins Mexico, Salvador, Guatemala, Costa Rica, Nicaragua, Kenya, Papua New Guinea, Panama, Tanzania, Uganda, Honduras, and Peru all at par, Colombia at 400 point premium, Burundi, Rwanda, Venezuela and India at 100 point discount, Dominican Republic and Ecuador at 400 point discount, and Brazil at 600 point discount.
Delivery Locations Exchange licensed warehouse in the Ports of New York District, Virginia, New Orleans, Houston, Miami, Bremen/Hamburg, Antwerp and Barcelona.

The New York and Virginia delivery points are par; the New Orleans, Miami and Houston delivery points are at a discount of 0.50 cents per pound; and the Bremen/Hamburg, Antwerp and Barcelona delivery points are at a discount of 1.25 cents per pound.

First Notice Day Seven business days prior to first business day of delivery month.
Last Trading Day One business day prior to last notice day
Last Notice Day Seven business days prior to the last business day of the delivery month
Position Limit Position Limit and Position Accountability information for all IFUS products can be found here.[3]
Markers TAS (Trade at Settlement)[4]
MIC Code IFUS
Clearing Venues ICUS
Trading Hours CITY TRADING PRE-OPEN
NEW YORK 4:15 AM - 1:30 PM

04:15 - 13:30

8:00 PM

20:00

LONDON 9:15 AM - 6:30 PM

09:15 - 18:30

1:00 AM

01:00

SINGAPORE 5:15 PM - 2:30 AM

17:15 - 02:30

9:00 AM

09:00

**In addition to the Pre-Open start time shown above, there will be a Post-Close Pre-Open order entry session from 2:00 pm to 6:00 pm NY time on the prior Exchange business day.
Codes Clearing Admin Name Coffee C
Physical KC
Logical KC
GMI (FC) 43
ION A.C.N. 2065
Coffee C ® Arabica Options
Trading Screen Product Name Coffee "C" Futures
Trading Screen Hub Name NYCC
Contract Symbol KC
Contract Size One Coffee C futures contract (37,500 pounds)
Price Quotation Cents and hundredths of a cent up to two decimal places
Contract Series Regular Options: March, May, July, September and December

Serial Options: January,Febuary, April, June, August, October and November. For a serial option, the underlying future is the next Regular futures contract month

Minimum Price Fluctuation 1/100 cent/lb, equivalent to $3.75 per contract
Exercise American style
Daily Price Limit None
Strike Price Intervals Strike increment is $0.025 cents per pound.
First Trading Day (Regular Options) Business day following the business day on which the underlying futures trade is listed.
First Trading Day (Serial Options) First business day of the third calendar month preceding the serial option month.
Last Trading Day Second Friday of the calendar month preceding such regular or serial option month; provided, however, that for each option, there will be a minimum of four trading days between the last trading day of the expiring option and the first notice day of the expiring future .
Expiration Date 17:00 Eastern time on the last trading day. Automatic exercise at one tick or more in-the-money at expiration on last trading day.
Position Limit Position Limit and Position Accountability information for all IFUS products can be found here. [5]
MIC Code IFUS
Clearing Venues ICUS
Trading Hours CITY TRADING PRE-OPEN
NEW YORK 4:45 AM - 1:30 PM

04:45 - 13:30

8:00 PM

20:00

LONDON 9:45 AM - 6:30 PM

09:45 - 18:30

1:00 AM

01:00

SINGAPORE 5:45 PM - 2:30 AM

17:45 - 02:30

9:00 AM

09:00

*Next Day

In addition to the Pre-Open start time shown above, there will be a Post-Close Pre-Open order entry session from 2:50 pm to 6:00 pm NY time on the prior Exchange business day.

Codes Clearing Admin Name Cocoa
Physical CC
Logical CC
GMI (FC) CY
ION A.C.N. 2050
Weekly Coffee "C" Arabica Options
Trading Screen Product Name Coffee "C" Weekly
Trading Screen Hub Name NYCC
Contract Size One Coffee “C” futures contract
Tick Size .01 cent per lb., equivalent to $3.75 per contract
Strike Price Intervals 2.50 cents per lb./250 point increments
Exercise American style. Exercise of a Weekly Option will result in creation of a position in the underlying Coffee “C” future contract.
Trading Hours ETS: 3:30 am to 2:00 pm NY time

Floor: 8:00 am to 1:30 pm NY time

Expiration Date 17:28 on the second Thursday of the calendar month immediately preceding the expiry month
Last Trading Day Each OFS contract expires on the last trading day of the regular option on the earlier of the two contract months in the spread pair; for example, all OFS contracts for which the March 2011 future is the front month of the pair will expire on the ltd of the March 2011 regular option.
First Trading Day See Sugar Rule 11.42 for details on the listing cycle.
Contract Symbol KCW

The Contract Symbol shown above will be used for weekly options listed on and after September 8, 2014. For information on the symbols used prior to that date please go to IFUS_Weekly_Options_FAQ.[6]

Underlying Contract The first listed future contract for which the Regular monthly option on the future contract has not yet expired.
MIC Code IFUS
Clearing Venues ICUS
Trading Hours CITY TRADING PRE-OPEN
NEW YORK 3:30 AM - 2:00 PM

03:30 - 14:00

8:00 PM

20:00

LONDON 8:30 AM - 7:00 PM

08:30 - 19:00

1:00 AM

01:00

SINGAPORE 4:30 PM - 3:00 AM

16:30 - 03:00

9:00 AM

09:00

Codes Clearing Admin Name O-Coffee C
Physical KCW
Logical KCW
GMI (FC) KW
ION A.C.N. None
Coffee "C" Arabica 1-Month Calendar Spread Options
Trading Screen Product Name Coffee "C" 1-Month CSO
Trading Screen Hub Name NYCC
Contract Symbol KC1 (“1 Month Series”)

Determining the two futures contracts in a CSO pair requires knowing both the underlying futures contract and the length of the spread. For Coffee "C" CSOs, the first two characters of the contract code are KC and the last character indicates the length of the spread.

For example, Contract Symbol “KC1”, the “1” indicates that the second month in the spread pair is ONE month forward from the front month of the pair. If the month symbol is K18 (May 2018), the Contract Symbol “KC1” implies that the second month in the pair is N18 (July 2018) – one contract month forward from the K18.

Likewise, Contract Symbol “KC2”, would imply that the second month in the pair is U18 (September 2018) – two contract months forward from the K18.

Contract Size A spread position between the two Futures contracts
Price Quotation Cents and hundredths of a cent per pound
Contract Series March, May, July, September and December.

1 Month Series: each of the first four listed futures months paired with consecutive listed months

Minimum Price Fluctuation 1/100 of a cent (one ‘point’) per pound
Daily Price Limit None
Strike Price Intervals 25 point increments.
Last Trading Day Each CSO contract expires on the last trading day of the regular option on the earlier of the two contract months in the spread pair; for example, all CSO contracts for which the March 2018 future is the front month of the pair will expire on the last trading day of the March 2018 regular option.
Call Option Buyer of a CSO Call Option has the right to establish a spread position of long the first month in the spread pair and short the second month in the pair, at a price difference equal to the Strike Price of the CSO contract.
Put Option Buyer of a CSO Put Option has the right to establish a spread position of short the first month in the spread pair and long the second month in the pair, at a price difference equal to the Strike Price of the CSO contract.
Strike Price The Strike Price of an CSO contract can be positive (indicating the price of the front month is above the price of the back month in the pair), negative (indicating the price of the front month is below the price of the back month in the pair) or zero (indicating the prices of the two months in the pair are the same).
MIC Code IFUS
Clearing Venues ICUS
Trading Hours CITY TRADING PRE-OPEN
NEW YORK 4:15 AM - 1:30 PM

04:15 - 13:30

8:00 PM

20:00

LONDON 9:15 AM - 6:30 PM

09:15 - 18:30

1:00 AM

01:00

SINGAPORE 5:15 PM - 2:30 AM

17:15 - 02:30

9:00 AM

09:00

Codes Clearing Admin Name O-Coffee C
Physical KC1
Logical KC1
GMI (FC) K1
ION A.C.N. None
Coffee "C" Arabica 2-Month Calendar Spread Options
Trading Screen Product Name Coffee "C" 2-Month CSO
Trading Screen Hub Name NYCC
Contract Symbol KC2 (“2 Month Series”)

Determining the two futures contracts in a CSO pair requires knowing both the underlying futures contract and the length of the spread. For Coffee ""C"" CSOs, the first two characters of the contract code are KC and the last character indicates the length of the spread.

For example, Contract Symbol “KC1”, the “1” indicates that the second month in the spread pair is ONE month forward from the front month of the pair. If the month symbol is K18 (May 2018), the Contract Symbol “KC1” implies that the second month in the pair is N18 (July 2018) – one contract month forward from the K18.

Likewise, Contract Symbol “KC2”, would imply that the second month in the pair is U18 (September 2018) – two contract months forward from the K18.

Contract Size A spread position between the two Futures contracts
Price Quotation Cents and hundredths of a cent per pound
Contract Series March, May, July, September and December.

2 Month Series: each of the first three listed futures months paired with the 2nd listed month forward from that month.

Minimum Price Fluctuation 1/100 of a cent (one ‘point’) per pound
Daily Price Limit None
Strike Price Intervals 25 point increments.
Last Trading Day Each CSO contract expires on the last trading day of the regular option on the earlier of the two contract months in the spread pair; for example, all CSO contracts for which the March 2018 future is the front month of the pair will expire on the last trading day of the March 2018 regular option.
Call Option Buyer of a CSO Call Option has the right to establish a spread position of long the first month in the spread pair and short the second month in the pair, at a price difference equal to the Strike Price of the CSO contract.
Put Option Buyer of a CSO Put Option has the right to establish a spread position of short the first month in the spread pair and long the second month in the pair, at a price difference equal to the Strike Price of the CSO contract.
Strike Price The Strike Price of an CSO contract can be positive (indicating the price of the front month is above the price of the back month in the pair), negative (indicating the price of the front month is below the price of the back month in the pair) or zero (indicating the prices of the two months in the pair are the same).
MIC Code IFUS
Clearing Venues ICUS
Trading Hours CITY TRADING PRE-OPEN
NEW YORK 4:15 AM - 1:30 PM

04:15 - 13:30

8:00 PM

20:00

LONDON 9:15 AM - 6:30 PM

09:15 - 18:30

1:00 AM

01:00

SINGAPORE 5:15 PM - 2:30 AM

17:15 - 02:30

9:00 AM

09:00

Codes Clearing Admin Name Coffee C
Physical KC2
Logical KC2
GMI (FC) K2
ION A.C.N. None

References

  1. Botanical Aspects. International Coffee Organization.
  2. The most valuable commodity is information. ICE.
  3. Position Limit and Position Accountability Information. {{{org}}}.
  4. TAS. {{{org}}}.
  5. Position Limit and Position Accountability Information. {{{org}}}.
  6. ICE Weekly Option Contracts. {{{org}}}.

Resources

ICE Coffee C ® Arabica Product Spec

ICE Weekly Coffee C ® Arabica Product Spec

ICE Coffee C ® Arabica 1-Month Calendar Spread Product Spec

ICE Coffee C ® Arabica 2-Month Calendar Spread Product Spec