The number of agricultural derivatives traded on Eurex has exceeded 100,000 contracts since their launch in July 2009. Volume has been increasing steadily, partly due to the volatile weather conditions in 2011 and 2010.
Year-to-date, the average daily volume (ADV) is above 300 contracts, or around 38,000 contracts in total. In June 2011, the ADV stands at almost 400 contracts. In 2010, the ADV was around 200 contracts.
Eurex offers six agricultural futures based on butter, European processing potatoes, hogs, London potatoes, piglets and skimmed milk powder. All futures are based on established reference prices from the respective spot markets and are settled in cash.
Eurex’s agricultural contracts are aimed at a broad group of users, including farmers and agricultural cooperatives, trading and slaughter companies and the processing industry. For them, on-exchange traded agricultural derivatives increase the price transparency while the central clearing of these contracts at Eurex Clearing mitigates the counterparty risks which are existent in OTC markets.
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