Moscow Exchange to start trading cocoa futures on Sept 24

MOSCOW. Sept 24 (Interfax) - The Moscow Exchange plans to launch trading in cash-settled cocoa futures contracts on September 24, with trading and settlements conducted in Russian rubles, the exchange said in a press release.

"Investors can use futures to expand the possibilities of investment strategies, hedging risks and generating a profit from price fluctuations. Futures contracts will allow market participants to protect their income better from undesirable changes in exchange prices for cocoa beans for those whose activities are related to the production and processing of cocoa," the exchange said.

The underlying asset of the futures is the cost of cocoa beans on foreign markets. The contracts reflect the dynamics of the price of cocoa beans supplied from countries in Africa, Asia, and Central and South America to any of the five delivery ports in the United States.

The parameters of cocoa settlement futures are contract code COCOA (CC), a minimum contract volume of 10 kg, as well as execution dates in March, May, July, September, and December, respectively.

The press service quoted Maria Patrikeyeva, Managing Director of the Moscow Exchange Derivatives Market, as saying that there is significant interest from market participants in the commodity instruments segment. "On the one hand, this is owing to rising raw material prices and increased volatility in the markets, and on the other hand, a steady need to diversify investments," she said.

Investors will have access to contracts with execution in December 2024, and March and May 2025 from the start of futures trading.

The Association of Confectionery Industry Enterprises (ASKOND) told Interfax that cocoa bean imports are estimated at nearly 69,000 tonnes to Russia in 2023.