According to a Reuters report, InterContinental Exchange’s new world cotton futures contract will begin trading on November 2, pending regulatory approval.
The new contract has been in development for several years. The cotton No. 2 futures contract, which only allows for delivery of U.S. cotton, has long served as the world benchmark, but origins will now include the U.S., Australia, Brazil, India, Benin, Burkina Faso, Cameroon, Ivory Coast and Mali. The contract will have 12 delivery points in the U.S., Australia, Taiwan and Malaysia.