EEX Sets New Annual Record In Dairy Futures - Cements Position As The Leading European Exchange Platform

The European Energy Exchange (EEX) has registered a new annual record on its dairy futures market in 2015. A total volume of 29,380 tonnes (which corresponds to 5,876 contracts) was traded in this sector throughout the year, surpassing 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%, 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”, explains 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.

The European Energy Exchange (EEX) is the leading energy exchange in Europe. It develops, operates and connects secure, liquid and transparent markets for energy and commodity products. At EEX, contracts on Power, Coal and Emission Allowances as well as Freight and Agricultural Products are traded or registered for clearing. Alongside EEX, EPEX SPOT, Powernext, Cleartrade Exchange (CLTX) and Gaspoint Nordic are also part of EEX Group. Clearing and settlement of trading transactions are provided by the clearing house European Commodity Clearing (ECC).