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CERTIFIED STOCKS: Certified stocks are physical Arabica coffee inventories, within the specifications of quality required by ICE NY, that can be delivered for futures liquidation. A trade that has a short contract in NY can deliver Arabica coffee to ICE for a future contract instead of performing financial liquidation. A commercial seller has the option to deliver the coffee at the delivery date. A commercial buyer of a future contract has the obligation to receive the coffee if it is delivered by the seller.
Detailed certified stock data can be found on the ICE futures US website: ICE
TRANSITION STOCKS: ICE has made amendments to the Coffee "C" futures contract rules in response to the European Union Deforestation Regulation (EUDR). The main changes, effective from June 3, 2024, are:
EUDR Information Requirement:
All coffee submitted for Sampling and Grading at the delivery points of Antwerp, Bremen/Hamburg, and Barcelona from December 31, 2024, must have EUDR information (defined as "Validated DDI") entered into a system mandated by the exchange.
STOCK DEFINITIONS:
Legacy Stock: Coffee stored in an Exchange Licensed Warehouse at the mentioned delivery points, with a Bill of Lading issued before June 29, 2023, remains deliverable against the "C" contract without additional penalties.
Transition Stock: Coffee stored at the same delivery points with a Bill of Lading issued on or after June 29, 2023, submitted for sampling and grading before December 31, 2024, without Validated DDI available in the DDI system.
Transition Stocks Discount: Starting from the March 2025 expiry, the delivery of Transition Stocks will incur a discount that accrues 25 points per month from January 2025 and an additional 50 points per month from January 2026.
Access the link to check the ICE statement.
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