A global cotton-futures contract set to start trading later this year will be backed by fiber from nine countries, including the U.S., India and Brazil, Intercontinental Exchange Group Inc. said.
Supplies from Australia, Benin, Burkina Faso, Cameroon, Ivory Coast and Mali will also be accepted, Brookly McLaughlin, an ICE spokeswoman, said by e-mail. Cotton will be delivered to locations in the U.S., Australia and Malaysia.
The company said the contract will complement the existing benchmark futures traded in New York, which are restricted to U.S. origin for supply. Specifications will be similar, with “a range of quality parameters allowed,” McLaughlin said.
China produced 28 percent of the world’s cotton in the 2012-2013 season, followed by India with 23 percent and the U.S. at 14 percent, according to estimates from the U.S. Department of Agriculture.
Atlanta-based ICE also has contracts for other soft commodities, including arabica coffee, raw sugar, cocoa and orange juice.