Futures market hits record high
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."