The CME keeps adding products and now they have one of interest to the dairy and food industry.
The Chicago Mercantile Exchange has announced that it will launch futures for a new dairy contract, CME Cash-Settled Butter™. The new contracts are scheduled to begin trading on Monday, September 19, 2005, and will be the exchange’s first dairy futures contract to trade exclusively on the CME® Globex® electronic trading platform.
CME Cash-Settled Butter futures are designed to meet the needs of the food industry, which have exposure to butterfat risk, but do not want to risk physical delivery. The contract will also differ in that the trade unit will be 20,000 pounds of Grade AA butter versus 40,000 pounds for the existing CME Butter futures contract. The contract will be cash settled based upon the USDA monthly weighted average price in the U.S. for butter.
For more information visit www.cme.com/butter.