CME Group, the world's leading and most diverse derivatives marketplace, and SGS, the world’s leading inspection, verification, testing and certification company, today announce the opening of a new, state-of-the-art cocoa grading facility in Amsterdam.
CME Group launched physically delivered, euro-denominated Cocoa futures on CME Europe, its European exchange, in March this year. Since launch it has traded more than 6,000 contracts and has over 1,000 contracts in open interest. This was complemented in June 2015 by the introduction of Cocoa options.
Amsterdam was selected as one of three delivery ports for CME Group’s new Cocoa futures contracts. Futures markets in cocoa are essential to manage risks in the complex supply chain involved in chocolate and related manufacturing across Europe. For a futures contract to be an effective hedge for physical cocoa, the process of sampling and grading cocoa held in storage must be rigorous.
“Delivering high quality services and fast turnaround times, our new grading facility puts SGS and CME at the forefront of the European cocoa market,” said Albert Wesenhagen, Agricultural Business Development and Branch Manager, SGS. “Our highly trained personnel will conduct intake supervision, as well as all testing and grading in accordance with CME criteria and procedures and FCC rules.”
“Opening a grading facility in Amsterdam puts this important function within close proximity of the key cocoa storage facilities, therefore improving the efficiency and cost effectiveness of the futures sampling and grading process,” said Cees Vermass, CEO of CME Europe Limited. “Our partnership with SGS helps to further ensure the integrity of the process, resulting in fair values for our clients and a more effective hedging tool for the cocoa market.”
SGS is the world’s leading inspection, verification, testing and certification company and is recognized as the global benchmark for quality and integrity. With more than 80,000 employees, SGS operates a network of over 1,650 offices and laboratories around the world.
We help ensure the integrity of the food chain by providing services that cover all aspects of the agricultural industry, helping customers manage crops, enhance seed development, conduct soil testing and harvesting, move product through the global supply chain and manage trade inspection at export and import. Serving all of the major players in the agricultural sector, our services reduce risk, ensure quality and improve productivity