Encouraging Response To Coffee Futures Exchange

The coffee futures exchange (Cofei) had its first trading day on Friday, and 64 lots of coffee were traded.

Cofei chairman Ashwin Shah said he was happy with the trading on the first day. "We are just making a beginning. Things will stabilise as we go along and people understand the procedure."

Around a hundred people were present on the fifth floor of Bangalore Stock Exchange at 9.30 a m as trading got underway. Trading is for an hour a day for the first month.

Though it is just a trial, actual financial transactions are being done for the trades.

A leading exporter and president of Coffee Exporters Association Ramesh Rajah said, "It will be a useful hedging tool for exporters. And, as more people see it and understand it, they will come and trade."

Four contracts were sold for September and November. The two grades traded in the exchange are Arabica Plantation A and Robusta Cherry AB. 30 lots (600 kg a lot) of Arabica plantation A were traded for September contract.

It opened at Rs 105 a kg and closed at Rs 105.5. November contract opened and closed at Rs 100. Ten lots were traded.

Robusta cherry AB for September contract opened at Rs 69 and closed at Rs 68 and 14 lots were traded.

The November contract opened at Rs 70 and close at the same amount. Ten lots were sold.

Trading will be from 11.30 to 12.30 in the morning from Monday to Friday.