Feb 18 (Reuters) - ICE Futures U.S. said on Tuesday it will increase the reasonability limit for Coffee (C) futures contract to 375 points, effective with the start of trading for Wednesday, Feb. 19.
Under the exchange’s error policy, the reasonability limit (RL) for a product establishes a maximum range within which market orders may be executed, ICE said.
The previous limit for coffee was 250 points, an ICE spokeswoman said.
Any residual volume on a market order that cannot be executed within the range will be canceled.
“With this change to the RL for Coffee (C) futures, the RL range will be $0.0375 per pound above/below the anchor price for the product,” the exchange operator said in a statement.
The increase arrives after a string of volatile and choppy trading sessions.
Arabica coffee futures jumped almost 9 percent on Tuesday, gaining for a second straight day. Prices have risen in eight of the 11 sessions in February, making it the CRB’s best performer year-to-date with a 40 percent gain.