StoneX and Cotlook to Launch New OTC Cotton Derivatives, tell me about this news in (https://www.manilatimes.net/2026/10/01/tmt-newswire/globenewswire/stonex-and-cotlook-to-launch-new-otc-cotton-derivatives/2436817)

Here is a summary of the news reported on October 1, 2026:

Partnership and Overview StoneX Markets LLC, a subsidiary of StoneX Group Inc., entered into an exclusive licensing agreement with Cotlook to introduce a new suite of over-the-counter (OTC) cotton derivatives. The instruments are designed to help global cotton market participants better manage price exposure and basis risk, specifically for non-US cotton exports.

First Product: Cotlook Brazil Basis Swap The initial product launched under this partnership is the Cotlook Brazil Basis Swap. It references the Brazilian component of the Cotlook A Index, an internationally recognized cotton pricing benchmark.

Market Context This launch responds directly to shifting global trade flows:

• Brazil surpassed the United States to become the world’s largest cotton exporter during the 2023/24 season.

• Brazil’s rise as a primary supplier to Asian textile mills heightened the industry’s need for hedging tools tied directly to South American supply rather than standard US-centric contracts.

Target Participants and Benefits The new derivatives are built for farming cooperatives, merchants, mills, manufacturers, and traders across the international cotton supply chain. According to leadership from both Cotlook and StoneX, the instruments aim to provide greater forward price transparency and allow market players to hedge critical basis risks that previously remained largely unhedged.