Washouts are used when:logistics become inefficient or too costlydelivery is no longer possiblemarket prices move significantlypositions need to be closed quickly→ In volatile dairy markets, this flexibility is crucial.

Register buy/sell positionsSettle financially instead of physicallyAutomatically calculate profit or lossGenerate financial journal entriesFull audit trail and control→ Close positions instantly with full financial clarity.

Washouts in Dairy Trading

Q: Physical contract washouts

Cancel or adjust contractsCalculate price differencesProcess via invoices or credit notesSeparate financial impact in reportingFor frequent use, this can be configured as a standardized workflow.→ Consistent, error-free financial settlement.

Close positions without moving goods

Not every contract ends in delivery

In dairy trading, not every contract results in physical delivery. Markets change. Prices shift. Situations evolve.
Sometimes, the smartest move is not to deliver — but to settle financially.

What is a washout?

A washout is the financial settlement of a contract without physical delivery.

Instead of transporting goods, the difference between:

the original contract price
and the current market price is settled in cash.

Why washouts matter

Washouts are used when:

logistics become inefficient or too costly
delivery is no longer possible
market prices move significantly
positions need to be closed quickly

→ In volatile dairy markets, this flexibility is crucial.

Washouts in Moo

Moo enables structured and transparent handling of washouts — both for futures and physical contracts.

Futures settlement

Register buy/sell positions
Settle financially instead of physically
Automatically calculate profit or loss
Generate financial journal entries
Full audit trail and control

→ Close positions instantly with full financial clarity.

Physical contract washouts

Cancel or adjust contracts
Calculate price differences
Process via invoices or credit notes
Separate financial impact in reporting
For frequent use, this can be configured as a standardized workflow.

→ Consistent, error-free financial settlement.

Why this matters

Without proper support

errors occur
financial impact is unclear
processes become manual and risky

With Moo

you stay flexible
you close positions when needed
you maintain full financial control

Need flexibility in closing contracts?

Discover how Moo supports washouts in your trading operations.