A study case on coffee (Coffea arabica): Limu Coffe - IRD

The Ethiopian Commodity Exchange Authority warehouse(s) and exchange places
ECX warehouse location is in Addis Abeba, and the concerned authority plans to
construct other ones, among those one in Jima. What about the transactions?
Standard lot size 150 bags with a net weight of 64 kg for
washed coffee and 85 kg for unwashed.
Maximum order size Maximum number of contracts a member can
transact in a single transaction: 20 lots.
Daily position limit Maximum number of lots a member may
Quotation factor Birr/feresulla
transact in a single day: 200 lots for himself
and all his clients, and 50 lots for him or a
single client.
Daily price filter Maximum percentage range relative to the
previous day’s closing price outside of which
offer and bid prices may not fall or rise: 5%.
Warehouse receipt All coffee must be under the supervision and
control of ECX warehouse before trade can
be done. Such warehouse receipt can be
traded only once between coffee supplier and
exporter.
Warehouse receipt expiration period Available for trading for a period on 90 days
from the day of deposit. Once traded the
warehouse receipt will expire on the
execution of the trade.
Pay-in of funds Time when funds will be withdrawn from
buyer pay-in accounts: on T+1 (Trade + one
working day).
Pay-out of funds Time when funds will be deposited into
seller pay-out account: on T+1
Exchange transaction fee 0.2% of transaction value
Handling and product certification fee Sampling and grading, weighting, loading
96