BRAZIL – Conab sells all options contracts offered at auction

MILAN – Brazil’s National Commodities Supply Corp., or Conab sold all options contracts for Arabica coffee in its latest auction aimed at boosting prices of the commodity.

The government sold 20,000 options contracts (each of 100 bags) offered to coffee growers in three rounds of auction held yesterday, for a total of two million 60-kilogram bags of coffee.

The auction saw a premium of R$154.51 per contract for 8,000 contracts to be delivered on Jan. 15 with the strike price of R$309.00 (US$162.60) per 60-kilogram (132 pounds) bag.

A premium of R$155.86 was established for 7,000 contracts to be delivered on Feb. 15 with the strike of R$311.70 traded.

The auction also saw a premium of R$157.21 for 5,000 contracts due on Mar. 15 at the strike of R$314.40 traded.

The previous auction on July 15 for one million bags was for coffee to be delivered in November 2009. The premium paid was R$950.15 per contract, up from an initial price of R$151.75.