Cash settled Butter
In commodity market terminology, Cash Settled Butter refers to futures on grade AA butter which is cash-settled against the monthly weighted average of the grade AA butter price announced by the National Agricultural Statistics Service (NASS). Butter is a typically yellow or white dairy product consisting of an emulsion of butterfat and made by churning milk or cream.
The futures contracts for Cash Settled Butter are traded on the Chicago Mercantile Exchange in contract sizes of 20,000 pounds of grade AA butter. Prices are quoted in U.S. Dollars and cents and the minimum fluctuation per contract is $5.00. The last date to trade is on the business day immediately preceding the day on which the USDA announces the Butter price for that contract month. The symbol for Cash Settled Butter is CB.