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CME Group, the world's largest and most diverse derivatives exchange, announced today the launch of deliverable nonfat dry milk futures and options on futures scheduled to begin April 20. The contracts will be listed with and subject to the rules and regulations of the Chicago Mercantile Exchange Inc.
The new nonfat dry milk listing differs from the existing cash-settled futures because at contract expiration settlement is made by the physical delivery of 44,000 pounds of Grade A or Extra Grade nonfat dry milk per contract.
"We are launching a second nonfat milk contract that in most respects mirrors our existing contract because our customers requested a physically deliverable instrument that would better suit their hedging needs," said John Harangody, CME Group Director of Commodity Products and Services. "Having two nonfat milk listings will enable our customers to utilize more efficient risk- management strategies."
The new contracts will trade virtually 24 hours a day exclusively on CME Globex(R) beginning Mondays at 9:05 a.m. Chicago time through 1:55 p.m. Fridays with a daily trading halt from 4 p.m. to 5 p.m.
