At EEX in Leipzig
Futures market for raw milk in the making
The European Energy Exchange (EEX) plans to introduce a raw milk futures market in the first half of 2018. This would make EEX the first European exchange on which milk can be traded.
According to Sascha Siegel, head of agricultural commodities at the EEX, it will soon be possible for dairy farmers to hedge price risks. It is not yet known what the settlement of the forward contract will look like. It is known that the size of a contract is set at 25.000 kilos of milk.
Growing trade
Since 2015, it has been possible to trade butter, skimmed milk powder and whey powder on the stock exchange in Germany.
In 2016, a dairy volume of 82.050 tons (16.410 contracts) was traded. In 2017, 92.700 tons of dairy have been traded so far. According to the initiator, this is proof that trade is growing.
Wouter Job
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