The European Energy Exchange (EEX) has registered a new annual record on its dairy futures market in 2015 with a total volume of 29,380 tonnes – 5,876 contracts – traded in this sector throughout the year.
This surpasses the previous maximum recorded in 2014 which totalled 26,385 tonnes (which corresponded to 5,277 contracts).
This represents a year on year increase of 11 per cent, which in turn sets a new record as the highest annual volume for dairy product risk management instruments that are traded on any exchange in Europe. EEX has offered trading in agricultural futures since 11 May 2015. Prior to this migration, these products were offered for trading on the Eurex Exchange.
This positive development was driven, in particular, by Skimmed Milk Powder Futures, which also achieved a new annual record with 16,225 tonnes traded (which corresponds to 3,245 contracts). Additionally, Butter Futures contributed 11,695 tonnes (2,339 contracts) to the total volume, while trading in Whey Powder Futures generated 1,460 tonnes (292 contracts).
“We are pleased about the positive development in agricultural derivatives trading”, says Sascha Siegel, Head of Agricultural Commodities of EEX. “We see the record volumes in the Dairy Futures as a clear sign which confirms the increasing importance of exchange hedging instruments for all parties involved in the dairy value chain. During times of structural change on the European dairy market, the participants can use our derivatives contracts to hedge against price change risks. Moreover, acquiring further participants for trading will remain a focus of our activities in 2016.”
In addition to trading in butter, skimmed milk and whey powder, EEX also offers exchange trading in processing potatoes, hogs and piglets. Furthermore, the Trade Registration service for fertiliser derivatives contracts, which EEX offers in cooperation with Cleartrade Exchange (CLTX), completes the EEX agricultural product offering.
