Dairy Meaning:
In commodity market terminology, Dairy refers to all products produced with cow’s milk and which have futures contracts and spot trading. These products are traded primarily on the Chicago Mercantile Exchange.

Dairy Example:
The following products are considered dairy products: butter, Non-fat Dry Milk, Cheese, Dry Whey, Class III and Class IV Milk. Dairy product futures are used by dairy farmers for hedging against the risk of adverse movements in the commodities market for the goods they produce.