NZX plans February launch for new dairy futures
By Paul McBeth
Dec. 21 (BusinessDesk) – NZX Ltd., which operates the country’s stock exchange, has flagged a February launch for the next two dairy futures products.
After several delays and a slow start, NZX Dairy Futures have gained enough support from traders to add skim milk powder and anhydrous milk fat futures on Feb. 18 to the whole milk powder contract. Chief executive Mark Weldon said in a statement there was increased liquidity in the WMP product, and the two new additions will help build a global market.
“Our aim is to have New Zealand recognised as a global dairy hub, which will be good for the industry here and, ultimately, for the national economy,” Weldon said.
Some 55 contracts have changed hands since the platform was launched in October, with most interest in the short-term contracts available.
Fiona Mackenzie, NZX head of markets, said the market still has a way to go before it’s “truly liquid” and it’s relying on “strong support from a range of dairy participants who are dedicated to seeing a futures market develop for the global dairy industry.”
The bourse operator will also add options for the three futures products next year.
Fonterra Cooperative Group’s online trading platform acts as the reference price for the stock exchange’s contract. The trade-weighted index rose 2.4% to US$3,690 a tonne in its auction last week.
NZX shares were unchanged at $1.47 in trading today, and have tumbled 39% this year.