Feb 25 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
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.