The European Energy Exchange (EEX) has launched the EEX Weekly European Cheese Indices (WECI) which will bring further price transparency to the European dairy market.
The European Energy Exchange (EEX) has launched the EEX Weekly European Cheese Indices (WECI) which will bring further price transparency to the European dairy market.
Published on Wednesdays and based upon price contributions from physical dairy market participants, the indices will cover four of the major European “commodity” cheeses: Cheddar Curd, Mild Cheddar, Young Gouda and Mozzarella.
The launch of the WECI indices is the result of an extensive pilot programme that has been supported by a cross-section of Europe’s leading companies from the dairy supply chain. EEX has developed the index specifications and price reporting methodology to accurately reflect spot/nearby prices in the underlying physical market.
At the time of launch, the indices will be supported by companies from eight different European countries representing the dairy supply chain, ranging from dairy co-operatives and processors through to traders and food manufacturers. Going forward, the WECI aims to attract further participation with EEX actively encouraging interested parties to participate, thereby increasing transparency in the European dairy markets.
Peter Blogg, Agricultural Commodities Expert at EEX, says: “The launch of ‘EEX Weekly European Cheese Indices’ is another positive step in our ambition to bring further price transparency and new hedging opportunities to the European dairy market. The design and launch of these innovative new indices has been supported by some of Europe’s leading dairy companies and organisations. We look forward to their continued support as we move forward to make the WECI indices the principal reference for wholesale cheese prices in the European market.”
At the time of launch, the “EEX Weekly European Cheese Indices” will be based entirely upon data contributed by individual companies. In the future, EEX may also consider the possibility to include additional price sources.
