Brazil Ethanol Futures

By editor on April 3, 2007 5:42 PM | Permalink | Comments (0) | TrackBacks (0)

BM&F plans to launch new ethanol contract to boost foreign investment

The Brazilian Mercantile & Futures Exchange announced, on March 27th, plans to launch a new ethanol contract, which is set to begin trading by the end of April. “This contract was basically elaborated to stimulate the participation of foreign investors”, stated BM&F’s CEO, Edemir Pinto.

The principal differences between this new contract and current alcohol one is the fact that the newer version will be quoted in dollars and its delivery point will be the Port of Santos, instead of the city of Paulínia. The Exchange’s Chairman, Manoel Felix Cintra Neto, also informed that both the Coffee and the Cotton contracts will suffer similar changes in order to become more attractive to the international market. “The new ethanol contract has been approved by the Board of Governors and is now awaiting approval by CVM (the Brazilian Securities and Exchange Commission)”, added Cintra Neto.