U.K. Cocoa, Coffee Depots Raise Maximum Rents the Most

Cocoa and coffee warehouse owners in the U.K. raised maximum rents for storage of both commodities in bags by the most of all 12 locations, NYSE Liffe data showed. The second-biggest increase was in Antwerp, Belgium.

The two U.K. warehouse owners storing coffee in bags that back futures contracts on NYSE Liffe increased maximum rent charges by an average 4.8 percent to 14.88 pounds ($23.76) a metric ton for the first half of next year, data published by the exchange and Bloomberg calculations showed. The four U.K. depots that can hold cocoa in bags boosted rent charges by an average 4.2 percent to 12.44 pounds a ton, the data showed.

The 11 warehouse keepers in Antwerp, where most of the cocoa and coffee that can be delivered through the bourse is stored, reported the second-biggest rent increase of the 12 locations, the data showed. While maximum rents for cocoa in bags were boosted by an average 3.7 percent to 19.18 euros ($25.70) a ton, charges for robusta coffee in bags were raised by 3.5 percent to 18.95 euros a ton.

Rents and movement out rates are being released after NYSE Liffe delayed their publication, scheduled for September, and last month asked some warehouse owners in Antwerp to resubmit proposed fees. Rents for next year weren’t increased for cocoa in bags in Bremen, Germany, Le Havre, France, and Hamburg. There was no change for rents for coffee in bags in Bremen, Hamburg, Marseille-Fos, France, and New Orleans.

Antwerp Depots

Depots in Antwerp held 87 percent of all the coffee with a valid grading certificate that can be delivered into futures contracts and 48 percent of the cocoa, according to exchange data. Stockpiles are concentrating in fewer locations, slowing withdrawal rates after buyers purchase the commodities on the exchange and allowing warehouse companies to profit from rent.

NYSE Liffe said in September it was extending to cocoa rules it implemented to speed up deliveries of robusta coffee. Facilities storing as much as 30,000 tons of cocoa will have to deliver at least 250 tons per working day. Those holding more will have to deliver 500 tons a day. Withdrawal rates were first set for coffee last year after companies including London-based Armajaro Trading Ltd. complained depots were too slow in loading out goods.

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