CME Group Adds Nonfat Milk Listings

CME Group launches deliverable nonfat dry milk futures and options on futures scheduled to begin 20 April. The new nonfat dry milk listing differs from the existing cash settled futures because at contract expiration settlement is made by the physical

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CME Group launches deliverable nonfat dry milk futures and options on futures scheduled to begin 20 April.

The new nonfat dry milk listing differs from the existing cash-settled futures because at contract expiration settlement is made by the physical delivery of 44,000 pounds of Grade A or Extra Grade nonfat dry milk per contract. The new contracts will trade virtually 24 hours a day exclusively on CME Globex(R).

“We are launching a second nonfat milk contract that in most respects mirrors our existing contract because our customers requested a physically deliverable instrument that would better suit their hedging needs,” says John Harangody, director, Commodity Products and Services, CME Group.

“Having two nonfat milk listings will enable our customers to utilize more efficient risk- management strategies.”

L.D.

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