Simultaneously new milk index
Term contract milk starts in August
In August, the raw milk futures contract will start on the European Energy Exchange (EEX). At the same time, there will be an EEX European liquid milk index. This is the price at which the contracts will be settled. The index includes the milk prices of the Netherlands, Germany, Denmark and Ireland.
The futures market for raw milk will start again on 15 August. The contract will complement the futures markets for butter, skimmed milk powder and whey. “With the expansion of the range of products, we are meeting the demand from the European dairy market. It gives our customers the opportunity to hedge against price risks with even more precision,” said Sacha Siegel, head of agricultural commodities at the EEX.
The EEX introduces a milk price index for the settlement of the futures contract, cash settlement. This will include the milk prices of the Netherlands, Germany, Ireland and Denmark. All countries represent an equal share. The milk prices come from the Milk Market Observatory, which is in line with legislation. The contract itself will represent a volume of 25.000 kilograms of milk.
Herman van den Pol
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