Dairy farmers, dairy processors and food companies use dairy derivatives to manage price risk for the commodities essential to their business.
As of September 2014, futures and options open interest exceeded 200k. However, commercial contacts believe that the market has been unable to absorb their orders and have placed only a fraction of their needs. The market lacked the daily liquidity they required to fulfill their risk management needs. Presently, the market requires speculative traders to boost the daily trading level as well as add to open interest.
Dairy Opportunities’ program is based on fulfilling the need for liquidity in dairy markets to create potential returns.
The Dairy Diversification Opportunity
- Dairy Opportunities is a fundamentally based dairy managed futures program that can diversify any portfolio.
- Results are non-correlated to any index.
- Most managed futures programs do not include a dairy trading component as the futures markets daily trading volume hadn’t historically met their minimums.
Dairy Opportunities knows the dairy markets and how to manage assets in what has been a volatile dairy futures market.