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November 14, 2019

CME To Launch Block Cheese Futures and Options

 |  By: Jim Dickrell

The CME Group announced today it will launch Block Cheese futures and options contracts in January 2020, pending regulatory review.

Each contract will represent the equivalent of 20,000 lb of block cheddar cheese, with the tick size of $0.001 per pound. The new contracts will be cash settled to the monthly average price for 40 lb block cheddar cheese reported by USDA’s National Dairy Product Sales Report.

“Our clients continue to look for tools to manage their price exposure in physical cheese markets, including food manufacturers and processors of cheese,” says Tim Andriesen, managing director of agricultural products at the CME Group. “The addition of Block Cheese futures and options to our existing suite of cash-settled dairy products provides clients with another solution for managing and hedging their risk.”

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