CME Group announced the launch of International Skimmed Milk Powder futures and options on futures contracts beginning May 9 for trade date May 10, 2010. It is the first exchange-listed dairy contract with physical delivery points located around the world. These contracts are listed with, and subject to, the rules and regulations of CME.
Skimmed milk in powder form has become a popular source of protein because it does not require refrigeration, making it easier to transport and store than fluid milk or dairy products containing fat. Delivery points for the electronically traded product include Auckland (New Zealand), Los Angeles, CA (U.S.), Melbourne (Australia), Newark, NJ (U.S.), Rotterdam (Netherlands) and Seattle, WA (U.S.).
Our contract specifications for International Skimmed Milk Powder listings include global delivery points and requirements to meet Codex standards that reflect the needs of international customers,” said Tim Andriesen, CME Group Managing Director of Commodity Products and Services. “These new products will provide an important tool for hedging price risk inherent in the global dairy market.
International Skimmed Milk Powder contracts will be listed monthly with each contract representing the equivalent of 20 metric tons and a tick size of $10. Trading hours are Sunday through Friday, 5:00 p.m. to 1:55 p.m. Chicago time with daily trading halts from 4:00 p.m. to 5:00 p.m. For more information, please visit www.CMEGroup.com/Internationalmilk.