ICE Announces Historic Changes to Arabica Coffee Futures Contracts

The Intercontinental Exchange (ICE), which operates Arabica coffee futures contracts – the global pricing benchmark for this commodity – has announced a significant change in the way these contracts will be quoted in the coming years.

According to an official statement released by the exchange last Thursday, the traditional quotation format of cents per pound will be replaced with a new standard: US dollars per metric ton.

This transition will begin with the March 2028 contract, which will be the last to follow the current format. From that point onward, all new futures and options contracts will be quoted in metric tons. ICE plans to introduce these updated contracts later in 2025.

What changes in practice?

In addition to the new pricing format, the updated contracts will allow for the use of big bags – flexible intermediate bulk containers – for coffee storage and delivery. Each big bag holds approximately one metric ton, aligning with the new contract unit.

This change reflects a move toward more modern logistics practices. Many producers, cooperatives, and traders are already using big bags as an alternative to traditional 60-kg jute sacks, due to their efficiency and safety in transport.

Impacts on the coffee supply chain

This shift in contract structure could represent a major turning point for the global coffee supply chain. The move to pricing in metric tons may facilitate comparisons with other commodities and simplify international operations, especially in markets that already use this measurement standard.

However, the industry is still awaiting more operational details on the transition, including timelines, regulations, and potential adjustments in trading systems.

EllerS Coffee is closely monitoring these market developments and remains committed to helping partners, producers, and clients around the world navigate these changes.

Source: Notícias Agrícolas