CME Cash Market Summary
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Dairy price risk management services provided by dairy industry experts
Our experienced dairy industry consultants provide clients with full-service brokerage, market analysis, forecasts and advice.
Join Liam Fenton, Global Head of the Dairy & Food Group at StoneX, in the countryside of County Limerick, Ireland, as he explains the value of getting his boots on the ground on the Fenton family dairy farm, and how leveraging insights gained while growing up on the farm help him advise “from their side of the table.”
Comprehensive dairy supply chain solutions with price risk management
Navigate volatility in the dairy markets with innovative risk management strategies, expert market insights, high-touch consulting services, and more.
Dairy risk management consulting
Explore our high-touch consulting and advisory services for mitigating risk and improving price risk management across the dairy supply chain.
Dairy trading services
Our global network of registered brokers provides efficient, real-time execution and direct access to dairy exchanges, including OTC and US Spot Call, as well as CME, EEX, SGX-NZX.
StoneX Plus
Get comprehensive market insights, proprietary forecasts, and expert analysis in an easy-to-use portal. Customize data displays and access live market prices and trading account analytics.
Dairy risk protection insurance
Enjoy the benefits of USDA dairy and livestock insurance programs and proven risk management strategies to protect revenue and lock in profits.
StoneX Plus
Your partner in dairy market success
There is no denying the volatility of commodity markets, and the dairy industry is no different, with milk and dairy products produced, traded, and consumed globally.
To help you stay ahead of trends and make smarter business decisions, we provide dairy market analysis through our StoneX Plus platform.
In addition to daily, weekly, and monthly reports, we also host outlook webinars, in-person seminars, and provide one-on-one telephone and email consultations.
Our dairy team is multilingual, speaking English, German, French, Polish, Spanish, Arabic, Mandarin, and Cantonese, ensuring clear and effective communication.
Commodity markets are naturally volatile, and the dairy industry is no exception where milk and dairy products are produced, traded and consumed on a massive global scale.
Be prepared for sudden price movements with StoneX Plus, our powerful analysis and risk management platform.
Redefining dairy risk management
Our clients have access to the full range of exchange-traded risk management products offered by exchanges worldwide, including the U.S., Europe, and Singapore. These products include exchange-traded futures and options, proprietary OTC trading tools, and cash-market instruments.
We have boots on the ground with our leading team of economists, analysts, and brokers throughout the US, Europe, Asia, and Australia. For over 20 years, our dairy team has been helping businesses navigate the volatile dairy markets.
Our dairy group collaborates with every step of the dairy supply chain, from producers and traders to manufacturers and retailers. We are proud to work closely with the majority of top global dairy companies.
How does dairy risk management work?
Risk management in the dairy industry involves various tools that are implemented to manage the risks associated with dairy commodity price volatility and other factors that can affect profitability throughout the entire dairy supply chain. Some of the common risk management strategies include:
- Hedging with futures contracts: As mentioned earlier, dairy farms, processors, and distributors can use futures contracts to lock in a price for their products and help protect themselves against price volatility.
- Forward contracts: Similar to futures contracts, forward contracts allow buyers and sellers to agree on a price for the delivery of dairy products at a future date. These contracts can be customized to meet the specific needs of the parties involved.
- Options trading: Options are contracts that give the holder the right, but not the obligation, to buy or sell a specific quantity of a dairy product at a certain price, on or before a certain date. Options can be used as a form of insurance against price fluctuations.
We offer dairy price risk management for:
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| EEX |
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| SGX-NZX |
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| OTC | Swaps and Options across all main dairy products for the US, Europe and New Zealand |
What are dairy futures?
Dairy futures are a type of financial contract that allow buyers and sellers to lock in a price for dairy products to be delivered at a future date. These futures contracts are traded on commodity exchanges, such as the Chicago Mercantile Exchange (CME), and are used by dairy farmers, Co-ops, processors, traders, distributors, end-users and retailers to hedge against price fluctuations in the dairy market.
For example, a dairy farmer might use a futures contract to lock in a price for their milk for delivery in six months' time. If the market price of milk decreases in that time, the farmer will still receive the price agreed upon in the futures contract, protecting them from potential losses. On the other hand, if the market price of milk increases, the farmer may miss out on potential profits but will still receive the agreed-upon price in the futures contract.
Dairy futures contracts can be used to trade a variety of dairy products, including milk, cheese, butter, skim milk powder, whole milk powder and whey. They are settled in cash at the end of the contract period, rather than by physical delivery of the dairy product.
The FCM Division of StoneX Financial Inc. has partnered with Ag Hedge Desk to create a Dairy Revenue Protection decision tool that enables producers to:
- Find baseline coverage based on their exposure to Class III and Class IV CME milk futures prices, quarterly production, state, and other metrics
- Compare alternatives
- Optimize coverage
This simple tool can deliver straight-forward views into what Dairy-RP might be suitable for you.
Does StoneX offer dairy revenue protection?
Yes, StoneX does offer dairy revenue protection.
USDA Dairy Revenue Protection (Dairy-RP) is a risk management program for US dairy producers. Administered by the USDA, it offers insurance coverage against drops in milk prices or production. Producers can purchase policies based on future milk prices, providing financial compensation if revenue falls below a guaranteed level. Dairy-RP aims to stabilize income and mitigate market volatility. Policies are customizable and purchased through authorized insurance agents. For the latest details, consult official USDA and RMA resources or an insurance agent.
Who can benefit from StoneX’s dairy consulting, marketing intelligence, and brokerage services?
Dairy Market Intelligence
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Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.
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GlobalityWith access to 36+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.
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TransparencyAs a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.
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ExpertiseFrom our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.
StoneX Financial Ltd (SFL) is registered in England and Wales, company no. 5616586. SFL is authorised and regulated by the Financial Conduct Authority (FCA) (registration number FRN:446717) to provide services to professional and eligible customers including: arrangement, execution and, where required, clearing derivative transactions in exchange traded futures and options. SFL is also authorised to engage in the arrangement and execution of transactions in certain OTC products, certain securities trading, precious metals trading and payment services to eligible customers. SFL is authorised and regulated by the FCA under the Payment Services Regulations 2017 for the provision of payment services. SFL is a category 1 ring-dealing member of the London Metal Exchange. In addition SFL also engages in other physically delivered commodities business and other general business activities which are unregulated and not required to be authorised by the FCA.
StoneX Financial Europe S.A. (SFE) is a securities trading firm registered in the Grand Duchy of Luxembourg under Company No. RC Lux B 10821. SFE is authorised by the Luxembourg Ministry of Finance and regulated by the Commission de Surveillance du Secteur Financier (registration no. P00000012) to carry out, inter alia, the activities of investment adviser, portfolio manager, professional acting on own account, broker in financial instruments, and commission agent.
The trading of derivatives such as futures, options, and over-the-counter (OTC) products or “swaps” may not be suitable for all investors. Derivatives trading involves substantial risk of loss. Past results are not necessarily indicative of future results. Futures and Options on Futures trading services are provided by the FCM Division of StoneX Financial Inc (“SFI”) (NFA ID: 0476094). SFI is wholly owned subsidiary of StoneX Group Inc.
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StoneX Financial Pty Ltd (“SFA”) (ACN: 141 774 727) holds an Australian Financial Service License and is regulated by the Australian Securities and Investments Commission (AFSL: 345646).
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