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Dairy futures and options serve as useful tools for managing the risks inherent to the dairy industry. Options on Dairy futures, in particular, allow producers and manufacturers to limit their price risks, while leaving open the door for profit potential. These markets also attract traders who are willing to accept the risk, in return for potential profits, that dairy professionals seek to transfer. This guide will walk you through what Dairy futures and options are, how they are commonly used, including various trading examples. It also covers the key market reports that are used, the contract specifications and how you can get started trading these products.