03/03/2017 (Agence Europe) – Stock exchange-traded contracts could improve the situation for farmers in the dairy sector by tackling high volatility, according to a new report from the European Commission. Private sector financial instruments such as futures and options can help farmers to tackle risks stemming from unforeseen price shocks and enhance planning reliability, the Commission says. Dairy financial products have been around in the United States since the 1990s, while such contracts were only introduced in their current form in the European Union (EU) as recently as in 2015. “Volumes traded are still low but significantly increasing, thus showing a growing interest for futures in the dairy market”, the Commission notes. (LC)