CME Butter Futures Set Open Interest Records

Open interest in butter futures traded on the Chicago Mercantile Exchange (CME) has risen considerably and set open interest records, reaching 1,250 on Jan. 24. Since Dec. 21, open interest in butter futures has risen nearly 113 percent. "We are very pleased with the continuing participation of the diary industry in this contract," said Bob Prosi, Co-chairman of the Dairy Products Committee and a member of the CME Board. "The record open interest reflects the importance of a risk management tool for butterfat." Open interest is the number of futures and options contracts outstanding at the close of trading each day. It can indicate the use of risk management instruments by institutions and individuals with a long-term stake in the markets, as well as liquidity of a contract. The CME's dairy complex is the world's largest marketplace for dairy products. The CME trades butter futures every business day from 08:45 to 13:10. Additionally, its dairy complex offers futures and options on milk, cheddar cheese, non-fat dry milk and whey. The Merc has traded butter since before 1919 when it changed its name from the Chicago Butter and Egg Board.