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NZX Dairy Futures has registered a record trading month with volume for July now standing at 5,225 lots, surpassing the previous highest traded month (March 2012) by 1,050 lots.
Activity in NZX Dairy Futures in July has been spread across all products in the dairy futures product suite, with Whole Milk Powder (WMP) once again leading the way with 2,310 lots traded, Skim Milk Powder (SMP) 2,215 lots traded, and Anhydrous Milk Fat (AMF) 700 lots traded.
Kathryn Jaggard, Head of Derivatives at NZX, commented: "Once again NZX Dairy Futures is showing that real liquidity exists in these contracts for those looking to manage dairy price risk. Particularly pleasing is that volume is spread across all three products – in particular Skim Milk Powder is experiencing real growth in volumes traded and participation.”
Total volume across all dairy derivatives products since launch now stands at just under 50,000 lots traded, with a value of US$167,000,000. The average daily volume for July was a record 261 lots. Open interest, a reflection of the depth and breadth of market activity, now stands at 7,434, more than 1,700 lots higher than this time last year.
"These contracts are well supported by key market participants – clearing members, trading members, and end-user clients – and this is the basis for further growth in participation and success in any derivatives contracts.
“There is no doubt that levels of volatility in dairy markets remain high which means demand for viable risk management tools is also high – growth in participation in the NZX Dairy Futures contracts reflects these market conditions.
"The trading activity seen in June and July augurs well for the remainder of the year and we expect this activity will be further enhanced when NZX goes to extended trading hours, allowing greater access for traders in Europe and the US,” said Jaggard.
