Milk Futures
Milk Futures allow milk producers to hedge their price risk. They also allow traders to speculate on the future price movements of milk.
Milk is often consumed by human beings beyond infancy. Cows milk is most commonly consumed. Many products consumed by us in our daily lives originate from milk including cheese, butter, ice cream and yogurt.
Milk Chart
As you can see from the chart, milk prices have been very volatile. The general trend over the last few years has seemingly been upwards.
Milk Contracts are traded on the CME exchange. A standard contract represent 200,000lbs of milk. Contracts are priced in cents per lb.
Milk trading can be profitable if you are able to buy low and sell high, but the volatility of this instrument combined with leverage make it high risk, therefore only risk capital should be used.
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