Brazil exchange to launch new coffee futures contract
SAO PAULO May 29 (Reuters) - Brazil exchange operator BM&FBovespa SA plans to launch a new coffee futures contract later this year in an attempt to increase the commodity's liquidity, which has fallen gradually in recent years.
The new contract will have the same maturity dates and quantity as existing ones, but coffee types 6 and 7 will be covered rather than types 4 and 5, said Fabio Dutra, commercial and market development director at the exchange.
Coffee types 4 and 5 are considered export-grade while 6 and 7 are generally for domestic consumption. The current contract for 4 and 5 type coffee expires in September 2015.
"We plan to launch this at the end of this year and trading will start at the beginning of next year," Dutra said at an event in Sao Paulo. He said he expects the new contract to attract mostly local market players. (Reporting by Fabiola Gomes; Writing by Caroline Stauffer; Editing by Peter Galloway)
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