16 Jun 2014

Milestone in dairy future trading

2:06 pm on 16 June 2014

The NZX's Dairy Futures Market has reached a milestone with 100,000 tonnes of product traded since the launch of the market in late 2010.

Head of derivatives Kathryn Jaggard said demand for risk management tools in the dairy sector has grown significantly through the first half of 2014 and industry participants are looking to NZX's dairy futures market to meet these needs.

Ms Jaggard said year-to-date volume is nearly three times ahead of the same period last year at nearly 30,000 tonnes.

The market had seen a boost in trading from Europe and the United States as well as Asia, she said, and trading hours had been extended so European and US customers had greater access.

Ms Jaggard said other improvements in the past year included changes to the final settlement price of the contracts and authorisation from US regulatory agency the Commodity Futures Trading Commission.