Friday, September 20, 2013

NYSE Liffe is seeking feedback from warehouse owners on a proposal to set minimum delivery rates for the first time for cocoa tied to its futures contracts, according to here three people with direct knowledge.

NYSE Liffe is proposing a minimum delivery rate of 250 metric tons of cocoa a day for warehouses storing as much as 30,000 tons, the people said, citing a letter sent by the exchange in the past several weeks. Depots holding more than 30,000 tons would have to delivery 500 tons, according to the people, who asked not to be identified because the information isn't public.

The exchange said in June last year it would introduce minimum delivery rates "in due course" after they started the same minimum load-out rules for robusta coffee. Ada Anunoby, a spokeswoman for Liffe, declined to comment on the cocoa plan.

The European Warehousekeepers Federation was contacted by NYSE Liffe about load-out rates on cocoa, Enrico Antony, chairman of the Amsterdam-based group, said yesterday.

Withdrawals of cocoa are mostly limited to no more than 200 tons a day per warehouse, three people with knowledge of the deliveries said in July, referring to depots in the Belgian city of Antwerp. A buyer taking 75,000 tons, the maximum allowed by Liffe for any of its contracts, might wait about 18 months if the beans are in the same depot.

To contact the reporter on this story: Isis Almeida in London at ialmeida3@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


Source: Bloomberg

No comments:

Post a Comment