Central Appalachian Coal Futures are an outright coal contract between a buyer and a seller. The contract offers a range of risk management strategies for both the coal mining and electric power industries. It also:
- Gives market participants increased flexibility to manage their risk with a cleared, financially settled instrument.
- Reflects the competitive coal and electricity markets
Things to know:
- Can be traded off-exchange for clearing only or electronically via CME Globex
- Coal is the principal fuel for generating electricity in the United States, accounting for approximately 55% of total electricity output.
- The United States is one of the largest coal producers in world and U.S. exports make up a significant share of the world export market.