The first commodity exchange in Brazil was founded
in São Paulo in 1917. The present Bolsa de Mercadorias & Futuros (BM&F)
was established in 1985; in 1991 it and the original exchange merged and in 1997
a further merger with the Brazilian Futures Exchange of Rio de Janeiro
consolidated BM&F's position as the leading derivatives trading centre in
the Mercosur free trade area. The exchange conducts business in many fields of
which coffee is just one. Details at www.bmf.com.br.
Through the GLOBEX system BM&F is linked to
exchanges in the United States and elsewhere and its coffee contracts are
accessible to non-residents of Brazil. This enables foreign traders and roasters
to hedge purchases of Brazilian physicals against Brazilian futures, thus
avoiding the differential risk that comes with hedging on other
exchanges.