Most coal futures are traded on two major exchanges: CME and ICE. One of the most popular coal contracts trades on NYMEX – now known as a designated contract market (DCM) of CME.
The key US coal futures contract is based on Central Appalachian Coal and trades in contract sizes of 1550 tons per contract and is priced in US dollars per ton. This is a physically settled contract with coal actually being delivered.
In contrast, the ICE contracts are cash settled to an index price, lending themselves more to speculative rather than hedging counterparties.
Note: Central Appalachian Coal is coal produced in the Central Appalachian region of the USA which comprises the counties located in southern West Virginia, eastern Kentucky, ...