ICE Futures Europe said on Wednesday it plans to launch a containerized white sugar futures contract on June 20 with the first listed contract to be October 2016. The contract, which could eventually supplant the existing global benchmark, reflects the growing dominance of containerized trade.
Traders estimate about 75 percent of the global physical white sugar trade is carried in ship containers, a share which is likely to increase. ICE also operates the current benchmark white sugar futures contract which is based on the traditional method of transporting sugar in large volumes on vessels known as bulkers or cargo ships.
The exchange said in a circular that the contract would be for physical settlement with a contract size of 50 tonnes. Delivery months will be March, May, August, October and December. Delivery ports include Paranagua and Santos in top sugar producer Brazil, Bangkok and Laemchabang in Thailand, Mundra in India, Jebel Ali in the United Arab Emirates, Jeddah in Saudi Arabia, Rotterdam in the Netherlands, Penang and Port Kelang in Malaysia and Le Havre in France.
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