LONDON COCOA FUTURES & EURO COCOA FUTURES ALLOWANCES & DISCOUNTS

Transcription

1 LONON OO UTURS & URO OO UTURS LLOWNS & SOUNTS The London ocoa futures and uro ocoa futures contract provides the flexibility to trade and deliver in 10 tonne units whilst also allowing delivery in larger units, either 100 tonnes in bags or 1,000 tonnes in bulk. The quality parameters allow the majority of cocoa grown to be potentially deliverable with grading allowances including premiums for good quality cocoa and discounts for poorer quality cocoa. Part of the quality assessment is a homogeneity test (based on the standard deviation of the bean count) with corresponding discounts for lack of uniformity. London ocoa futures allowances will be set according to the tables listed here in pounds sterling. llowances for cocoa delivered against the uro ocoa futures contract will be calculated by taking the total London ocoa futures allowance and applying the spot P/UR X rate as at 16:00 London time on the last trading day. rading llowances The applicable scale of grading allowances for any given delivery month is determined on the following basis: NOT Y O: RNS TWN T: N T LST TRN Y O: PR-RN TORY S ON T LY STTLMNT PR O T OLLOWN LVRY MONTS: TRMN ON T LST TRN Y O T OLLOWN LVRY MONTS: March May May March May uly uly May uly September September uly September ecember ecember September ecember March March ecember Origins Tenderable ORN ROUP 1 ocoa delivered from one of the following origins shall not be subject to a discount: ôte d voire, emocratic Republic of ongo (formerly known as Zaire), quatorial uinea, hana, renada fine estates, amaica, Nigeria, Republic of ameroon, Republic of Sierra Leone, Togo, Trinidad & Tobago plantation and Western Samoa. ORN ROUP 2 ocoa delivered from one of the following origins shall be subject to a discount of 25 per tonne: São Tomé and Príncipe and Sri Lanka. ORN ROUP 3 ocoa delivered from one of the following origins shall be subject to a discount of 50 per tonne: razil ahia Superior, razil Vitoria Superior, cuador and Papua New uinea. ORN ROUP 4 ocoa delivered from the following origin shall be subject to a discount of 75 per tonne: Malaysia. ORN ROUP 5 ocoa delivered from any other origin shall be subject to a discount of 100 per tonne.

2 llowances for efective eans SL % POUNS STRLN PR TONN llowances for Slaty eans SL % POUNS STRLN PR TONN

3 llowances for ean ount SL of beans per 100 grammes POUNS STRLN PR TONN 90 (and below)

4 llowances for Residue nd oreign Matter (ll Origins xcept Papua New uinea)* SL grammes per 2 POUNS STRLN PR TONN *llowances in respect of the net weight of bean clusters shall be determined by reference to this table. (Net weight of bean clusters shall be the gross weight of the clusters reduced by 50%) llowances for Standard eviation of the ean ount SL of beans per 2 POUNS STRLN PR TONN

5 Standard eviation of the ean ount Test The standard deviation of the bean count test (homogeneity) is designed to assess the uniformity of bean size within a delivery unit. The formula used is based on a standard deviation calculation whereby the average number of beans per 100g for the whole delivery unit is measured and then compared against the overall variability of bean sizes within the delivery unit. xcessive variability will result in the award of allowances or, above the maximum permitted value, in the delivery unit being graded as not tenderable. ormula for the standard deviation of the bean count test: (P(Z - ) 2 + Q(Z - ) 2 + R(Z - ) 2 + S(Z - ) 2 ) Where: = ean count/100g in 13mm round-holed sieve = ean count/100g in 11.5mm round-holed sieve = ean count/100g in 10.5mm round-holed sieve = ean count/100g in base P = % bean-weight to total weight in 13mm round-holed sieve Q = % bean-weight to total weight in 11.5mm round-holed sieve R = % bean-weight to total weight in 10.5mm round-holed sieve S = % bean-weight to total weight in base Z = Total bean count/100g The following are needed to calculate the standard deviation of the bean count: Number of beans per sieve and base; and Weight of beans per sieve and base rom this data the following may be derived: ean count/100g per sieve or base (,,, or above) = Number of beans in sieve x 100 Weight of beans in sieve Percentage weight per sieve (P, Q, R or S above) = Weight of beans in sieve Total weight of beans Total bean count per 100g (Z above) = (Please see below for worked example) Total number of beans in each sieve and base x 100 Total weight of beans in each sieve and base Worked xample SMPL 13MM SV 11.5 MM SV 10.5 MM SV S TOTL eans (P) / () eans (Q) / () eans (R) / () eans (S) / () eans (Z) / / / / / / / 15 3 / / / 19 7 / / / / / / 40 7 / / St. dev. = Original data = erived values = Standard eviation of the ean ount

6 Weight llowances Standard and large delivery units are subject to a weight allowance if either is delivered more than six months but less than 36 months after the last day of the month in which it was weighed. The relevant percentage deduction (see table right) shall apply to the exchange delivery settlement price of the delivery month: MONTS % LLOWN (PR TONN NT WT) urther nformation London Soft ommodity erivatives +44 (0) softs@theice.com theice.com/products/ futures-&-options/agriculture Weight Tolerances The weight of delivery units tendered against the contract must be within the permitted tolerance as outlined in the table on the right: PRMTT WT TOLRNS O LVRY UNTS elivery unit SU LU U Nominal net weight (tonnes) ,000 Upper limit (%) Lower limit (%) ntercontinental xchange, nc. ( ). The information and materials contained in this document including text, graphics, links or other items are provided as is and as available. and its subsidiaries do not warrant the accuracy, adequacy or completeness of this information and materials and expressly disclaims liability for errors or omissions in this information and materials. This document is provided for information purposes only and in no way constitutes investment advice or a solicitation to purchase investments or market data or otherwise engage in any investment activity. No warranty of any kind, implied, express or statutory, is given in conjunction with the information and materials. The information in this document is liable to change and undertakes no duty to update such information. You should not rely on any information contained in this document without first checking that it is correct and up to date. The content of this document is proprietary to in every respect and is protected by copyright. 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. ll third party trademarks are owned by their respective owners and are used with permission. Trademarks of and/or its affiliates include ntercontinental xchange,, block design, NYS and New York Stock xchange. nformation regarding additional trademarks and intellectual property rights of ntercontinental xchange, nc. and/or its affiliates is located at: ntercontinentalexchange.com/terms-of-use