Understanding Dairy Futures and Options

SGX-NZX’s Dairy Derivatives Market provides the dairy industry with a forward view of dairy prices and a cash settled instrument for managing price risk simply and efficiently. This market provides tools which participants can use to mitigate the risks associated with movements in the price of dairy products.

SGX-NZX offers futures and options contracts for all levels of market participants from New Zealand farmers through to the international buyer of dairy commodities. It's important to understand some basics about these financial risk management tools and the dairy industry itself.

The NZX dairy hedging academy is designed for end users or new stakeholders to the market to learn key concepts about SGX-NZX’s dairy derivatives market and how you can start trading these products.

The academy is broken into four modules covering the physical market dynamics, characteristics of the dairy futures and options market alongside trading examples, alongside explanations of other key features of derivatives markets.