Dairy Futures and Options Tutorial

Butter (Cash Settle) Futures Contract

• Contract Size: 20,000 pounds
• Product Code: CB
• Delivery Months: Every calendar month for 24 months
• Last Trading Day: TThe Exchange business day prior to the day the average monthly average NASS dry AA Butter price is announced for the calculation of Classified Prices. This is on a Friday, no later than the 5^th of the month following production.
• Minimum Fluctuations: $0.00025/lb ($5/contract)
• Daily Price Limits: Maximum movement from previous day's settlement price is $0.05/lb ($2000/contract) expanded to $ 0.10 per lb. after one day limit move. No limits during the last 5 days of the expiring contract month
• Settlement: Cash settlement on the day the monthly average butter prices used in Announced Classified prices report is published
• Options Contract?: Yes