UPDATE 1-ICE raises margin requirements for coffee, sugar, soybean oil
Feb 25 (Reuters) - ICE Futures U.S. on Tuesday raised initial margin requirements for trading arabica coffee, raw sugar and soybean oil effective with the opening of business on Feb. 26.
The exchange operator increased Coffee (KC) initial margins by 7.5 percent to $7,200 per contract from $6,700 and raised Sugar #11 (SB) margins by 21.4 percent to $850 per contract from $700 earlier.
This is the sixth consecutive margin increase for coffee since mid-November and the highest margin requirement for sugar since October 2012.
The Atlanta-based exchange also raised soybean oil (IBO) margins by 36.4 percent to $750 per contract.
Arabica coffee and raw sugar futures turned lower on Tuesday on late profit-taking after hitting their highest levels in months due to deteriorating crop prospects in drought-hit top producer Brazil.
Arabica coffee prices are currently more than 50 percent above levels traded a month ago, when Brazil was expected to produce a crop of 51 million to 60 million 60-kg bags.
Click here for Factboxes on previous ICE margin changes for coffee and sugar.