.jpg)
NZX’s Dairy Futures Market continues to prosper with another record trading day on 22 November with 1,294 lots traded. This surpasses the previous record day set in August this year of 1,270 lots.
There has been a significant increase in trading in the second half of 2013, driven by increased participation and demand for risk management in dairy, together with an extension of trading hours.
Since 23 August 2013 the NZX Dairy Futures Market has opened at 2.00am New Zealand time, allowing easier access for global participants to hedge exposure to dairy commodity prices, particularly in the US and Europe.
Total volume traded year to date is up 45% on the prior year, an encouraging sign for the market that was launched in October 2010.
NZX Head of Derivatives Kathryn Jaggard commented: "It is clear that global dairy participants are increasingly looking to manage risk by using tools such as NZX Dairy Futures. Consistently high dairy commodity prices over recent months have only amplified the need to mitigate risk and create price certainty."
NZX CEO Tim Bennett commented: "NZX Dairy Futures are well on the way to becoming liquid risk management tools. To achieve daily trades and volumes of up to 1,300 lots per day is right up there with other developing contracts and some established ones."
