Basics on the milk commodity and its class III futures
The Class III Milk futures trades at the Chicago Merchantile Exchange (CME) which is part of the CME Group. The futures’ electronic platform ticker is ‘DA’ for Dairy.
Contract size is 200.000 lbs or approximately 91 metric tons with expiries for every single month.
Price quotation is USD per 100 lbs or one centum weight (cwt). That leverages the futures contract to a factor of 2000 (= 200.000 lbs / 100 lbs).
Maximum daily price movement is USD 0.75 above or below the previous day’s settlement price.
The Class III Milk futures is cash-settled only. No delivery of actual fluid milk or any of its products would take place.
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