LONDON, U.K. – Intercontinental Exchange (NYSE:ICE), the leading global network of exchanges and clearing houses, announced today that ICE Futures Europe will introduce a new physically delivered containerised white sugar futures contract. ICE Futures Europe expects to launch the contract in the first quarter of 2016, with a first maturity of August 2016, subject to satisfactory completion of applicable regulatory processes.
The containerised white sugar futures contract will trade at ICE Futures Europe alongside the existing physically delivered white sugar futures contract. Transported in containers, rather than break-bulk vessels, the containerised contract will be closely aligned with standard shipping procedures for refined sugar.
“In recent years the underlying physical market for refined sugar has evolved from break-bulk to containers, with the latter now accounting for the majority of shipments.
The launch of the containerised white sugar contract follows extensive consultation with the sugar industry and provides a choice of delivery method, as well as an efficient hedging mechanism,” said Ben Jackson, President and Chief Operating Officer, ICE Futures U.S.
ICE Futures U.S., Intercontinental Exchange’s U.S. based futures exchange, also offers two sugar futures contracts: the sugar no. 11 contract, which allows for physical delivery of raw cane sugar at a variety of global delivery points, and the sugar no. 16 contract, which allows for physical delivery of raw cane sugar within the U.S.
