Futures market hits record high

MICHAEL FOREMAN
Last updated 16:09 25/11/2013

Relevant offers

Agribusiness

Indonesia buying up wheat to feed bread craze Border beasties hit Budget wall Toyota unveils new Hilux: More models coming Dairy land values hold despite low payout Dual sheep dog champion eyes NZ title New Taranaki company focuses on farm safety Adverts give false reflection of farming - Fed Farmers dairy chairman District councils to monitor land farms Farm prices still rising buyers remain positive over dairy prospects Federated Farmers firm up policy focus

The NZX Dairy Futures Market clocked up another record trading day last Friday with 1294 lots traded, beating the previous record set in August of 1270 lots.

Trading on the dairy futures market has increased significantly in the second half of this year, driven by increased demand for risk management in dairy, together with an extension of trading hours, the NZX said.

The market has opened at 2am New Zealand time since August, in a move that was designed to allow easier access for overseas participants, particularly in the United States and Europe.

NZX said the total volume traded this year was up 45 per cent on the previous year.

"It is clear that global dairy participants are increasingly looking to manage risk by using tools such as NZX Dairy Futures," NZX head of derivatives Kathryn Jaggard said.

"Consistently high dairy commodity prices over recent months have only amplified the need to mitigate risk and create price certainty."

NZX chief executive Tim Bennett said the record was an encouraging sign for the market that was launched in October 2010.

"NZX Dairy Futures are well on the way to becoming liquid risk management tools," he said.

"To achieve daily trades and volumes of up to 1300 lots per day is right up there with other developing contracts and some established ones."

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content