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Eurex to intensify its activities in the dairy segment of its agricultural derivatives offering

Eurex Published on 07 July 2011

The international derivatives exchange Eurex announced that it will intensify efforts to extend its footprint in the agricultural markets. The exchange will kick off a new educational initiative to reach key U.S. dairy market participants with a one-day Chicago conference on global dairy markets on July 18. The program features renowned dairy market academics including Michael Keane, senior lecturer at University College Cork in Ireland, and Mark Stephenson, director of dairy policy analysis from the University of Wisconsin.


The conference is accompanied by the launch of the latest Eurex newsletter for investors later in July. The new Dairy Market Outlook is a weekly newsletter produced for Eurex by leading commodities broker FCStone LLC.

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The conference is organized together with lead sponsor FCStone LLC, a Fortune 500 company that provides customers across the globe with execution and advisory services in commodities and other asset classes. Robert Chesler, vice president food service division at FCStone LLC, stressed the receptiveness of the U.S. dairy community: “The United States has embarked on a road toward embracing the globalization of the dairy industry. As the global dairy industry becomes interconnected, global volatility is at the forefront of many participants’ concerns. The risk management tools offered by exchanges such as Eurex provide an oasis from undesired price fluctuations.”

Vassilis Vergotis, executive vice president and head of Eurex Offices Americas, emphasized the importance of reaching key U.S. customers in growing the Eurex dairy contracts: “U.S. agricultural markets are extremely well-developed and serve as a model for international growth in dairy derivatives. Given the global nature of markets, we believe that U.S. dairy market participants can enhance their risk management by adding Eurex’s dairy futures to their portfolio of risk management tools. We are expanding our educational initiatives and teaming up with key partners to raise product awareness.”

The conference and newsletter are well-timed as Eurex’s agricultural contracts have reached an important milestone recently: the number of traded agricultural derivatives exceeded 100,000 contracts since their launch in July 2009. Currently, Eurex offers two dairy contracts based on butter and skimmed milk powder; futures based on European processing potatoes, hogs, London potatoes and piglets complement the offering. All futures are based on established reference prices from the respective spot markets and are settled in cash. PD

—From Eurex news release

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