20 Sep 2018
Liquid milk futures trading launched at EEX
The EEX (European Energy Exchange), Europe’s leading trading platform for dairy derivatives, has expanded its operations with the launch of a Liquid Milk Future. This is the first of its kind in Europe.
The EEX already offers trading with futures on butter, skimmed milk powder and whey powder. In 2017, 137,820 tonnes of commodity equivalent were traded on the EEX dairy derivatives market, an increase of 68% from 2016. Futures markets are a helpful tool for cooperatives to hedge against price risks and are an increasingly vital amidst recurring volatility in agricultural markets.
Pricing is set according to the “EEX European Liquid Milk Index” which is equally composed of milk prices from Germany, the Netherlands, Denmark and Ireland, with the prices based on data from the Commission’s “Milk Market Observatory”. The Liquid Milk contract volume is 25,000 kilogrammes, with the last transaction settled with a price of above 37 cents for December 2018.
By Alison Graham
European Affairs Executive