Euronext to add dairy futures support mechanism

The pan-European exchange Euronext says it will launch a dairy futures and options complex in the spring to let the European dairy industry hedge its exposure to price moves when milk quotas expire in the European market.

“The full suite of futures and options will cover the three key dairy products currently traded in Europe and internationally: butter; skimmed milk powder and whey powder”, said Euronext, the exchange which spans Belgium, France, the Netherlands, Portugal and the UK.

The European Union, the world’s top dairy producer, is scheduled to abolish milk quotas from April 2015. Euronext had already launched an EU skimmed milk powder contract in 2010 but suspended it in July due to a lack of liquidity.