The contract allows for risk management of coffee price fluctuations and will have the possibility of physical delivery.

To meet the demand from producers, cooperatives, traders, and industries in the coffee market for a protection instrument against volatility risks, B3 has launched the Conilon/Robusta Future Contract, which began trading on the exchange last Monday (23). 

The future contract has the possibility of physical delivery, with lots deposited in warehouses accredited by B3. The product will be traded raw, in grains, in contracts equivalent to 100 sacks of 60kg, with expiration in the months of January, March, May, July, September, and November. 

Unlike Arabica coffee, the contract for Conilon/Robusta coffee will be quoted in Brazilian Reais and not in US dollars, in order to strengthen the national market and facilitate transactions for producers who are more familiar with trades in the national currency. 

Brazil is one of the largest producers of Conilon/Robusta coffee in the world, with Espírito Santo being responsible for approximately 70% of national production. Other states that also stand out in the production of this variety are Rondônia and Bahia. 

In addition to the Conilon/Robusta coffee future contract, B3 offers six other commodity contracts: Arabica coffee, corn, CME soybeans, FOB Santos soybeans, fat cattle, and hydrated ethanol. 

Technical specifications of the contract: 

Negotiation Object: Raw coffee, in grain, of Brazilian production, coffea canephora, type 7/8 (7-35) or better, for delivery in the municipality of Vitória (ES). 

Negotiation Code: CNL 

Quotation: Reais (BRL) - per sack of 60kg 

Contract Size: 100 sacks of 60kg, or 6 metric tons 

Expiration Months: January, March, May, July, September, and November