The European Energy Exchange (EEX) set a new record volume in its Dairy Derivatives markets in the first half of 2021. With 77,760 tonnes equivalent traded (equals 15,552 contracts), EEX volumes increased by 58% compared to H1 2020 (49,300 tonnes, equals 9,860 contracts).
This result was driven by major increases in EEX’s European Butter Futures where volume rose by 70% to 35,880 tonnes (equals 7,176 contracts) while European Skimmed Milk Power Futures achieved a 45% growth, reaching a volume of 40,350 tonnes (equals 8,070 contracts). The H1 trading volume in both products also hit new records.
The strong upswing in trading activity underlines EEX’s position as Europe’s leading dairy derivatives market. “The performance of EEX Dairy Derivatives in H1 2021 reflects the ever increasing utilisation of price risk management tools by the European dairy industry. In particular, we have seen strong growth in the adoption of farmer “forward pricing programmes” using EEX futures as the basis for contract pricing. This, in turn, increases overall futures contract liquidity and provides further opportunities for other participants in the supply chain to hedge their price risk.” says Sascha Siegel, Head of Agricultural Commodities at EEX.
In the first half of 2021, EEX European Processing Potato Futures were still affected by the consequences of the Covid-19 situation which strongly impacted the demand side for Processing Potatos/ French fries in Europe and beyond.
The overall volume in EEX Agricultural products increased by 3% to 26,756 contracts.
| EEX Volumes (contracts) | H1 2021 | H1 2020 | Change |
| TOTAL Agricultural Products | 26,756 | 26,060 | 3% |
| European Processing Potato Futures | 11,204 | 16,200 | -31% |
| European Dairy Futures | 15,552 | 9,860 | 58% |
| -thereof: Butter Future | 7,176 | 4,225 | 70% |
| -thereof: Skimmed Milk Powder Future | 8,070 | 5,581 | 45% |
| -thereof: Whey Powder Futures | 306 | 54 | 467% |
For the full overview of EEX Group’s volumes in the first half of 2021, please click here.
