Monday, October 15, 2018
 Coming May 2010 - International Skimmed Milk Powder Futures  

Global suppliers and buyers of skimmed milk powder (SMP) will have a new hedging tool to manage price volatility with the launch of CME Group’s new International Skimmed Milk Powder (SMP) futures and options. Trading begins at 5pmCT on May 9 for the May 10 trading day. Trading will take place on the Globex electronic platform.

Contracts will be listed 24 months in advance. SMP futures are based on physically delivered contracts with six worldwide delivery points: Los Angeles, Newark and Seattle in the United States; Auckland, New Zealand; Melbourne, Australia; and Rotterdam, Netherlands. Each contract is 20 metric tons.

The global SMP market has firmed in recent weeks after softening during the December - February period (see chart) . In Europe, supplies are tighter as “milk production is increasing slower than projected and when possible, milk is clearing to cheese production versus butter/powder,” says USDA’s Dairy Market News. In Oceania, DMN adds, “traders and handlers anticipate that prices will be firm for the near term and will ease once the new milk season resumes.”

For more information about the new contract, including contract specs and trading rules, go to

Source: Daily Dairy Report

Posted on Thursday, March 25, 2010 (Archive on Thursday, April 01, 2010)
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