CME Contract Specifications Changes: Class III Milk Contract

Effective March 12, 2001, the Class III Milk contract will have a new listing cycle. It will include an additional six months, meeting the marketplace's request for a full eighteen months of hedging protection. Mini Milk options are to be delisted as of the same date.

The CME Contract Specifications pages on the CME's Web site have been updated to reflect the following:

• A revised listing cycle for Class III Milk Futures and Options Contracts. Currently, only twelve months are listed at a time for the Milk contracts. The new listing cycle will include an additional six months.
• Mini-Milk Options were developed to coincide with the launch of the Federal Government's Dairy Options Pilot Program to assist diary farmers with risk management. However, the size of the 50,000-lbs. contract was too small and most users migrated towards our larger contracts.

As of February 22, 2001, open interest in the February through June 2001 Calls is 15, and open interest in the February through July 2001 Puts is 22. These options will be allowed to trade out, but the August 2001 and subsequent options will be delisted in March 12, 2001 and no new months will be listed for trading.

The ticker symbols for both futures and options are: Class III Milk/DA, Mini Milk/MQ

The Contract Specifications pages are at: http://www.cme.com/clearing/spex