ICE Cocoa

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The ICE Cocoa contract is the world benchmark contract for the global cocoa market. The contract prices physical delivery of exchange-grade product from a variety of African, Asian and Central and South American origins in any of five US delivery ports.

Uses

Cocoa seeds are processed into cocoa powder for use mainly to make chocolate and cocoa butter. Cocoa pulp can be eaten fresh or made into cocoa juice.[1]

Data Quotes

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

Cocoa Futures
Trading Screen Product Name Cocoa Futures
Trading Screen Hub Name NYCC
Contract Symbol CC
Contract Size 10 metric tons
Price Quotation Dollars per metric tons
Contract Series March, May, July, September, December
Minimum Price Fluctuation $1.00/metric ton, equivalent to $10.00 per contract.
Settlement Physical Delivery
Daily Price Limit None
Deliverable Origins The Growth of any country is deliverable, and Growths are divided into three delivery Groups:

Group A (deliverable at a premium of $160/ton) includes the Growths of Ghana, Ivory Coast, Nigeria, Sierra Leone and Togo.

Group B (deliverable at a premium of $80/ton) includes the Growths of Arriba (Ecuador), Cameroon, Colombia, New Guinea, Venezuela and several other Growths.

Group C (deliverable at par) includes the Growths of Bolivia, Haiti, Indonesia-Sulawesi, Malaysia and all other Growths not specified in the contract Rules as being in Groups A, B or C.

Delivery Locations At licensed warehouses in the Port of New York District, Delaware River Port District, Port of Hampton Roads, Port of Albany or Port of Baltimore.
First Notice Day Ten business days prior to first business day of delivery month.
Last Trading Day One business day prior to last notice day.
Last Notice Day Ten business days prior to last business day of 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 4:45 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

**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 Cocoa
Physical CC
Logical CC
GMI (FC) CY
ION A.C.N. 2050
Cocoa Options
Trading Screen Product Name Cocoa Futures
Trading Screen Hub Name NYCC
Contract Symbol CC
Contract Size One Cocoa CC futures contract (10 metric tons)
Price Quotation Dollars per metric ton
Contract Series Regular Options: March, May, July, September and December

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

Minimum Price Fluctuation $1.00/metric ton, equivalent to $10.00 per contract.
Daily Price Limit None
Strike Price Intervals Strike increment is $50 per ton.
First Trading Day (Regular Options) Business day following the business day on which the underlying future is listed for trading.
First Trading Day (Serial Options) First business day of the third calendar month preceding the serial option month.
Last Trading Day First Friday of the month preceding the contract month.
Expiration Date 17:00 Eastern time on the last trading day. Automatic exercise at one tick or morein-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
Cocoa 1-month Calendar Spread Options
Trading Screen Product Name Cocoa 1-Month CSO
Trading Screen Hub Name NYCC
Contract Symbol CC1 (1 Month Series)

Determining the two futures months in an CSO pair requires knowing both the Contract Symbol and the Month Symbol. CSO contract symbols are three characters long, with the first two characters denoting the futures contract for the pair and the third digit signifying how to identify the second month in the pair, which must be implied using the Month Symbol for the CSO contract. For example, the Contract Symbol “CC1” indicates the underlying contract is Cocoa, and that the second month in the spread pair is ONE month forward from the front month of the pair. If the Month Symbol for an CSO contract is K10 (or May 2010), the Contract Symbol “CC1” implies that the second month in the pair is N10 (or July 2010) – one contract month forward from the K10; the Contract Symbol “CC2” would imply that the second month in the pair is U10 (or Sep 2010) – two contract months forward from the K10.

Contract Size A spread position between the two futures contract months.
Price Quotation Dollars per metric ton
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 $1.00/metric ton
Daily Price Limit None
Strike Price Intervals 10 point increments. ($10 per metric ton)
First Trading Day See Cocoa Rule No. 9.62 for details.
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 2011 future is the front month of the pair will expire on the ltd of the March 2011 regular option.
Call Option Buyer of an 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 an 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 None
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

Codes Clearing Admin Name O-Cocoa
Physical CC1
Logical CC1
GMI (FC) C1
ION A.C.N. None
Cocoa 2-month Calendar Spread Options
Trading Screen Product Name Cocoa 2-Month CSO
Trading Screen Hub Name NYCC
Contract Symbol CC2 (2 Month Series)

Determining the two futures months in an CSO pair requires knowing both the Contract Symbol and the Month Symbol. CSO contract symbols are three characters long, with the first two characters denoting the futures contract for the pair and the third digit signifying how to identify the second month in the pair, which must be implied using the Month Symbol for the CSO contract. For example, the Contract Symbol “CC1” indicates the underlying contract is Cocoa, and that the second month in the spread pair is ONE month forward from the front month of the pair. If the Month Symbol for an CSO contract is K10 (or May 2010), the Contract Symbol “CC1” implies that the second month in the pair is N10 (or July 2010) – one contract month forward from the K10; the Contract Symbol “CC2” would imply that the second month in the pair is U10 (or Sep 2010) – two contract months forward from the K10.

Contract Size A spread position between the two futures contract months.
Price Quotation Dollars per metric ton
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 $1.00/metric ton
Daily Price Limit None
Strike Price Intervals 10 point increments. ($10 per metric ton)
First Trading Day See Cocoa Rule No. 9.62 for details.
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 2011 future is the front month of the pair will expire on the ltd of the March 2011 regular option.
Call Option Buyer of an 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 an 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 None
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

Codes Clearing Admin Name Cocoa
Physical CC2
Logical CC2
GMI (FC) C2
ION A.C.N. None

Resources

References

  1. Use of Cocoa. ETAWAU.
  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}}}.