http://cmegroup.mediaroom.com/index.php?s=43&item=3015 CHICAGO, May 5, 2010 â CME Group, the worldâs leading and most diverse derivatives marketplace, today announced the launch of Cheese futures and options on futures. The cash-settled contracts will be available on CME Globex®, the exchangeâs electronic trading platform, with trading scheduled to begin on June 20, 2010, for trade date June 21. These contracts will be listed by and subject to the rules and regulations of CME. âThis contract was requested by our customers such as manufacturers and processors of cheese to better fit the needs of their risk profile,â said Tim Andriesen, CME Group Managing Director of Agricultural Commodities. âMany of these customers already participate in our Class III Milk and Dry Whey futures and options markets. The new Cheese contracts will enable them to directly lock in future prices for cheese.â Cheese is made from Class III milk. Dry whey is a byproduct of processing the milk into cheese. Manufacturers, processors, food companies and others have used the Class III contract to meet their hedging needs since 1996 and the Dry Whey futures contract launched in 2007. The Cheese futures will complete the âdairy crushâ with which the original commodity as well as its product and byproducts can be hedged. The new contracts will be listed monthly with each contract representing the equivalent of 20,000 pounds of cheese and the tick size of $0.001 per pound. Trading hours are Sunday through Thursday, 5:00 p.m. to 4:00 p.m. Chicago time, and Friday until 1:55 p.m., with daily trading halts from 4:00 p.m. to 5:00 p.m. For more information, please www.cmegroup.com/cheese.
Rappers like 50 Cent have been rapping about bartering with Cheese for years ... who would have thought he was way ahead of his time.
Should you enter the treacherous cheese market, be aware that your competitors are always looking for a Goat. They'll assume you don't know Jack. With hard work you may be able to make plenty of Cheddar, but your gains will sometimes be Sharp and other times Mild. Failure to prepare will leave you Bleu. It is best you don't use the Swiss strategy, as it has many holes in it.
1) Hasn't this contract failed at some other exchange already? 2) Why not just trade it only from 4pm to 5pm?
Hopefully the dairy trade will really take off. I know i'm thinking of leasing a seat in specializing in trading the crush spread in dairy. On another note of failed contracts. Where are the Minneapolis Black Tiger Gulf Shrimp futures when you need them?