April 17, 2018 / 8:25 PM / 6 months ago

ICE tweaks raw sugar contract rules around CAFTA quota -notice

NEW YORK, April 17 (Reuters) - The Intercontinental Exchange Inc on Tuesday said it had amended rules for delivery of raw sugar to the No 11 futures contract to ensure that Central American sweetener cannot be shipped to the United States through a preferential quota.

Sugar from Central America and the Dominican Republic can enter the highly-protected U.S. market at a lower tariff-rate under a U.S.-Central American Free trade agreement (CAFTA). Traders often purchase physical deliveries through the ICE Futures U.S. contract. That sugar can come from one of 29 origins, according to the exchange website.

The amendment ensures that sugar delivered against the No 11 contract from any of those origins cannot be sent into the United States under the CAFTA quota, ICE said in a notice published on Tuesday.

The rules of delivery against the No 11 previously had a similar rule that applied to any similar preferential agreements for sugar into the European Union.

The change is effective with the March 2019 expiry, the notice said. (Reporting by Chris Prentice Editing by Tom Brown)

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