FUTURES MARKET – Brazil confident to trade its coffees at the Ice

MILAN – Brazil\’s Minister for Agriculture Wagner Rossi is awaiting an official statement from the New York Stock Exchange authorizing the country to trade its best quality washed and semi-washed Arabica coffee, local media say.
 
As already reported, the coffee committee of the Ice recommended late Wednesday allowing the delivery of Brazilian Arabica coffee beans against the benchmark future contract.
 
The measure is now awaiting authorization from the board of directors. “It is odd that one of the world\’s biggest coffee exporters does not trade at the New York Stock Exchange”, Rossi remarked, referring to the fact that 19 countries currently trade coffee at Nyse.
 
According to the director of the Agriculture Ministry\’s Coffee Department Roberio Silva, up to five years ago only a small portion of the Brazilian coffee fitted the Nyse’s trading criteria, but today Brazil’s best quality coffee output reaches 3.5 million 60-kg bags, with a potential for growing further.
 
If the board approves the proposal, there will be an adaptation period of 22 months before Brazilian coffee starts to be traded at New York Stock Exchange, Silva added.