StoneX Markets LLC, a subsidiary of StoneX Group Inc. (NASDAQ: SNEX), has partnered with Cotlook to launch a new suite of over-the-counter cotton derivatives, effective October 1, 2026. The exclusive licensing agreement aims to help market participants manage risk as Brazil’s dominance in global cotton exports reshapes international trade flows and pricing dynamics.
- Lead Product: Cotlook Brazil Basis Swap
- Reference Index: Brazilian component of the Cotlook A Index
- Target Participants: Farming cooperatives, merchants, mills, manufacturers, and cotton market participants
- Key Market Shift: Brazil overtook the US as the world’s largest cotton exporter in the 2023/24 season
Brazil’s rise to the top of global cotton exports has created a critical need for hedging instruments tailored to the country’s market. The Cotlook Brazil Basis Swap references the Brazilian component of Cotlook’s internationally recognized price benchmarks, enabling participants across the supply chain to hedge previously unhedged basis risk in their international operations.
The collaboration with StoneX is an important evolution in our longstanding mission to bring price transparency to the international cotton industry. We are pleased to be working with StoneX to create a valuable instrument for our customers to actively mitigate the full composition of their price risk.
– Antonia Prescott, Managing Director and Editor, Cotlook
Our customers in the global cotton industry have long sought the ability to manage the basis risk inherent in their international cotton supply chains. These OTC derivatives will allow them to hedge a significant portion of their price risk that was previously unhedged.
– Brett Phillpott, Global Co-Head of Commercial Hedging & Commodities, StoneX
StoneX Group Inc. operates a global financial services network serving over 80,000 commercial, institutional, and payments clients across more than 80 offices on six continents. Cotlook Ltd., a UK-based independent pricing authority, has published cotton market data and analysis for more than 100 years and is used as a reference by government institutions and major trading organizations worldwide.
Antonia Prescott, Managing Director and Editor at Cotlook. Source: LinkedIn
Brett Phillpott, Global Co-Head of Commercial Hedging & Commodities at StoneX. Source: LinkedIn
