CME Group Milk Class III
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The Class III Milk futures contract represents milk used primarily in the manufacturing of cheddar cheese, and, thus, is also known in the industry as "cheese milk." All factors affecting milk production and cheese cash prices influence the price direction of this contract.
| Milk Class III futures | ||
|---|---|---|
| Exchange | CME Group | |
| Settlement | Cash settled | |
| Trade Unit | 200,000 pounds of Grade A cow’s milk | |
| Point Value | 1 point = $0.01 per hundred weight=$20 per contract | |
| Tick Value | Quoted in cents per pound; minimum price fluctuation $0.01 per cwt = $20.00 per contract | |
| Contract Months | Every calendar month out 24 months | |
| Last Trading Day | Business day prior to USDA Class III Milk Price announcement. The Class III Milk price is issued on the first Friday of the following month if that Friday is the 5th of the month, or on the preceding Friday if that Friday is not. | |
| Open Outcry | Electronic | |
| Trading Hours | 9:40 a.m to 1:10 p.m.; Last Trading Day - 9:40 a.m. to 12:10 p.m. Chicago time | 9:05 a.m. Monday through 1:30 p.m. Friday with daily hour-long trading halts at 4:00 p.m. Chicago time |
| Ticker Symbol | DA | DA |
| Price Limits | $0.75 per cwt = $1,500 per contract | $0.75 per cwt = $1,500 per contract |
| Milk Class III options | ||
| Trade Unit | One futures contract | |
| Point Value | 1 point = $.01 per hundred weight=$20 per contract | |
| Tick Value | Regular 0.01=$20.00; Cabinet - 0.005=$10.00 | |
| Option Months | 24 consecutive months on a monthly cycle and Flex® Options | |
| Strike Prices | The exercise prices are stated in terms of dollars per hundredweight. For all contract months, exercise prices -- at intervals of $.25; e.g., $11.75, $12.00, $12.25, etc. At the commencement of option trading in a contract month, CME Group lists put and call options in a range of $4 above and below the previous day's settlement price of the underlying futures contract. When a sale, bid, offer or settlement price in the underlying futures contract occurs at, or passes through an exercise price, CME Group lists on the next trading day put and call option contracts at the next higher (or next lower) exercise price within a $4 range above (or below)the exercise price at which or through which the underlying futures sale, bid, offer, or settlement price occurred. | |
| Exercise Style | American-style. An option may be exercised by the buyer up to and including the last day of trading. To exercise, the clearing member representing the buyer submits an Exercise Notice to CME Clearing by 7:00 p.m. on the day of exercise. | |
| Option Expiration Day | Need OED rules! | |
| Open Outcry | Electronic | |
| Trading Hours | 9:05 a.m.-1:12 p.m.; Last Trading Day - 12:10 p.m. Chicago time | Mon-Thurs 9:05 a.m.-4:00 p.m.; Shutdown period from 4:00 p.m.-5:00 p.m., ReOpen 5:00 p.m.-4:00 p.m. Friday, Close at 1:30 p.m. (12:10 p.m. on the last day of trading) Chicago time |
| Ticker Symbol | Clearing=DA; Ticker=DA; Globex=DC | See to left. |
| Price Limits | None | None |
