• Skip to primary navigation
  • Skip to content
  • Skip to primary sidebar
  • Skip to footer

Daniels Trading

Independent. Objective. Reliable.

Top Navigation

  • Open an Account
  • Request Trading Demo
  • 1.800.800.3840
  • Sign Up
  • Log in

Primary Navigation Menu

  • About
    • Who We Are
    • Services
    • Careers
    • Risk Disclosure
  • Trade
    • Broker-Assisted
    • Self-Directed / Online
  • Hedge
    • DanielsAg Mobile App
    • Ag Marketing Plan
    • WASDE Analysis
    • Grain Resources
    • Livestock / Dairy Resources
    • Hedging Videos
  • Invest
    • Automated Strategies
    • Managed Futures
  • Advisories
    • GENERAL / FUNDAMENTAL
      • DT Newsletter
      • Insider Market Advisory
      • Capture the Move
      • Turner’s Take Newsletter & Podcast
    • TECHNICAL ANALYSIS
      • The Cullen Outlook
      • Market Dimensions Advisory Room
      • Rath Overlay
      • Swing Trader’s Insight
      • Trade Spotlight
    • AG MARKETING
      • Cattleman’s Advisory
      • The Swine Times
      • Technical Ag Knowledge
      • This Week in Grain
      • Turner’s Take Ag Marketing
    • THIRD-PARTY RESOURCES
      • CFRN
      • Market Action Scanner
      • Moore Research Center, Inc. (MRCI)
      • OptionWorks®
      • TASMarketProfile.com
  • Education
    • CME Group Resource Center
    • Guides
    • Frequently Asked Questions
    • Order Entry Handbook
    • Webinars
  • Blog
    • Futures 101
    • Ag Marketing
    • Tips & Strategies
    • Trading Advisories
  • Resources
    • Trading Software
    • Quotes and Charts
    • Futures Calendars
    • Contract Specifications
    • Margin Requirements
    • Futures Calculator
  • Accounts
    • GAIN Capital Futures
    • R.J. O’Brien
  • Contact
Home / Education / Markets / Livestock Futures Overview / Milk Futures

Milk Futures

Milk Futures Today, the largest milk and dairy producers in the world are India, the U.S., Germany, and Pakistan. There has been a steadily increasing demand for milk as developing countries become more affluent. The grading process for milk is very specific, with drastic differences between Grade A and Grade B milk. Grade A farms must be inspected biannually, and the milk must be immediately cooled after milking. Grade B standards are much more lax.

Milk Futures Contract Specifications
Contract Size 200,000 lbs. of Class III Milk ( ˜ 90 metric tons)
Price Quotation Class III Milk — Cents per hundredweight (cwt.)
Trading Hours Sundays at 5:00 p.m. through Friday at 1:55 p.m. with daily trading halts from 4:00 p.m. to 5:00 p.m.
Minimum Price Fluctuation $0.01 per cwt (= $20.00 per contract)
Product Code CME Globex: DC
CME ClearPort: DA
Clearing: DA
Listed Contracts 24 Calendar Months
Settlement Method Financially Settled
Last Trade Date Trading shall terminate on the business day immediately preceding the day on which the USDA announces the Class III price for that contract month. (LTD 12:10 p.m.)
Settlement Procedures Class III Milk Futures Settlement Procedures
Exchange Rules These contracts are listed with, and subject to, the rules and regulations of CME.
Source: CME Group

Milk Facts

In the Unites States, the top three milk-producing states are California, Wisconsin, and Idaho. Most milk produced in the U.S. is produced by Holstein cows. This breed of cow has the ability to produce more milk on average than other breeds.

The milk that is first extracted from cows is called raw milk. For milk to be deemed safe to consume the milk must go through fluid milk processors and then is pasteurized. Milk is used in a variety of dairy products with one third used for cream and fluid milk, while the remaining two thirds are used for other products like cheese. In actuality, over 9 billion pounds of cheese are produced from almost half of the milk stock. Mozzarella and Cheddar are the most popularly produced types of cheese in America today.

Class III Milk futures that are traded on the CME are mainly used in the production of cheese, cheddar in particular. Milk futures can allow traders to address price risk among those involved in the trade of milk and to assess supply and demand of milk for both the current and future outlook.

Source: USDA

Last updated October 2015

Additional Info

Recent Posts on Milk

  • Market Spotlight: Milk (11/9/2012)- Evidence of man’s use of animal milk as food was discovered in a temple in the Euphrates Valley near Babylon, dating back to 3,000 BC. Humans drink the milk produced from a variety of domesticated mammals, including cows, goats, sheep, camels, reindeer, buffaloes, and llama. Today, the largest milk and dairy producers in the world are India, the U.S., Germany, and Pakistan.

Primary Sidebar

Tips & Strategies

DT Pro Webinar 1: Getting Started on the Platform

Dt Pro Webinar 2: Advanced Order Entry DOM Techniques

The dt Pro webinar series provides viewers with a comprehensive look at Daniels Trading’s flagship platform, dt Pro. An invaluable tool for the market technician, dt Pro brings the opportunity of equity, commodity, and currency derivatives to individuals around the globe. If you’re interested in trading futures with maximum efficiency, then dt Pro may be… Read more.

Energy Futures A Complex Grounded in Crude Oil

Inside Oil & Gas Futures Webinar – Video Recast and Summary (2019-02-12)

What moved the Oil and Gas Futures markets higher today? We discuss the Saudi Arabian Production Cuts, US Sanctions on Venezuala, & more.

Inside E-mini Equity Futures Webinar – Video Recast and Summary (2019-02-05)

Are you interested in what drove the E-mini Equity Futures markets higher today? With all the news coming out let’s check out these markets.

More Tips & Strategies

  • Futures Trading Strategies: Price Discovery
  • Advanced Techniques for Futures Trading: Order Carry Over vs. End of Day Cancellation
  • Advanced Techniques for Futures Trading: How Slippage Can Compromise a Strong Strategy
  • Seasonality: The Impact on the Energy Markets
  • 3 Reasons Investors Get Into the Futures Market
  • Are the Futures Markets Efficient?
Trustpilot

Footer

Trustpilot

Contact Us

Daniels Trading
100 South Wacker Drive, Suite 1225
Chicago, IL 60606
+1.312.706.7600 Local / Int'l
+1.800.800.3840 Toll-Free
+1.312.706.7605 Fax

Connect with Us

Site Navigation

  • Frequently Asked Questions
  • About Us
  • Customer Reviews
  • Contact Us
  • Futures Blog
  • Open a Futures Trading Account
  • Media Resources
  • Fund Your Account
  • Legal Notices

Copyright © 2019 · Daniels Trading. All rights reserved.

Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

  • Risk Disclosure
  • Privacy Policy
  • Terms of Use
  • Back to top