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.
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI . StoneX is a trading name of StoneX Financial Ltd (“SFL”). SFL is registered in England and Wales, Company No. 5616586. SFL is authorized and regulated by the Financial Conduct Authority [FRN 446717] to provide to professional and eligible customers including: arrangement, execution and, where required, clearing derivative transactions in exchange traded futures and options. SFL is also authorised to engage in the arrangement and execution of transactions in certain OTC products, certain securities trading, precious metals trading and payment services to eligible customers. SFL is authorised & regulated by the Financial Conduct Authority under the Payment Services Regulations 2017 for the provision of payment services. SFL is a category 1 ring-dealing member of the London Metal Exchange. In addition SFL also engages in other physically delivered commodities business and other general business activities which are unregulated and not required to be authorised by the Financial Conduct Authority. StoneX Group Inc. acts as agent for SFL in New York with respect to its payments services business. StoneX APAC Pte. Ltd. acts as agent for SFL in Singapore with respect to its payments services business. ‘StoneX’ is the trade name used by StoneX Group Inc. and all its associated entities and subsidiaries.
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. Past performance of any futures or option is not indicative of future success. Indicators are not a trading system and are not published as a specific trade recommendation. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.
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