It may be the end of an era, but dairy won't feel a big impact – at least not yet.

The CME Group announced it will close most of its futures trading pits in Chicago and New York by July 2, saying open outcry futures trading has fallen to just 1% of the company's total futures volume.

What impact does this have to CME dairy market participants?

“None at this time,” according to HighGround Dairy’s Eric Meyer. “Nearly all CME dairy complex futures are traded on Globex. Capabilties to trade odd month futures packs (strips like Jan-May, Feb-July, etc.) will need to be explored with the CME, but HighGround believes the technology is available to handle these through Globex, as well.”

Meyer said CME sources confirmed to HighGround that dairy options and spot cheese, butter and nonfat dry milk markets will remain open on the floor. However, CME's announcement may signal the beginning of the end of open outcry trading at the CME in the near future. 

HighGround Dairy is a division of HighGround Trading, LLC, a full-service futures and options brokerage firm based in Chicago.

Options on futures contracts, which continue to trade actively on both the floor and the screen, will remain open on both trading floors, according to CME. All options pits will be located on a single floor in the company's Chicago Financial Room by September. 

CME Group will hold members' meetings in Chicago and New York to answer questions and discuss transition plans.  Only current member owners will be admitted.

Read also: Ending an era, CME Group to shutter most futures pits