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The price of arabica coffee futures will be changed to metric tons by ICE

According to a statement from ICE, the Intercontinental Exchange, which runs the arabica futures contracts that set the benchmark price for this type of coffee globally, will be changing the way these contracts are offered over the next few months.

The exchange announced late Thursday that they would stop offering the current futures contracts which are priced in cents per pound and instead offer new contracts with a price in dollars per ton.

When the contract expires, around March 2028, all contracts will be quoted in dollars per metric ton. Around March 2028 all contracts will then be quoted in dollars/metric ton.

The statement stated that the exchange will introduce new arabica futures and options contracts priced in metric tonnes later this year.

ICE stated that the new contract will allow coffee to be stored inside flexible intermediate bulk containers. These are commonly known as big bags on the market, and can usually carry up to 1 metric tonne of product.

Several coffee producers, co-ops, and traders use big bags instead of traditional 60 kg jute bags for storing and transporting coffee.

You can check here the details of the exchange's announcement of the termination of a number of contracts. (Reporting and editing by Mark Potter.)

(source: Reuters)