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Article

CME Set to Shift Butter to Electronic Auction on April 10

Mar 15, 2017

The CME Group announced last week that its transition to an electronic, transaction-based auction that began with nonfat dry milk in January will continue with moving Spot Call butter to the CME Direct Auction Platform on Monday, April 10.

CME encourages customers who are not currently registered and enabled to trade butter on the CME Direct Auction Platform to do so before March 27. The auction time will be revised to accommodate a break between the open outcry cheese sessions and the electronic butter and nonfat dry milk sessions. No start dates have been announced for moving blocks and barrels of cheese to the new platform.

The CME Group made the decision last year to change from an open outcry market to an electronic auction in response to industry demand, saying it “will further enhance the transparency of prices and user experience, while expanding access to a broader set of commercial dairy customers, brokers and other physical market participants.”

"The change is a welcome one for IDFA and its members,” said Dave Carlin, IDFA senior vice president of legislative affairs and economic policy.

The CME Group, an IDFA Gold Business Partner, plans to work closely with customers and the industry to continue a smooth transition. The company said the change will have no impact on the availability and accessibility of dairy futures and options products, which enable customers to manage their dairy price risk.

For more details, visit Dairy Spot Call Auction or call the dairy auction hotline at (312) 648-3999. Members may contact Carlin at dcarlin@idfa.org.