Innovative partnership between Nui, Interfood and StoneX will develop a new futures curve for the Mexican dairy market
Three parties with their own expertise in digital agri-trade solutions, international dairy trade, and market intelligence have joined forces to build a first-of-its-kind dual-stream buy/sell platform focused on the trade of non-fat dried milk (NFDM) between North America and Mexico.
[Montevideo, Uruguay, 31 May 2024]
To improve trade outcomes and better serve Mexican dairy customers, Interfood has partnered with Nui Markets to build a unique digital trading platform, called Interfood Exchange, that facilitates buying and selling NFDM in one place. Trade information on this platform will then be shared on StoneXPlus, which provides exclusive dairy market insights.
“This three-way partnership gives us a unique opportunity to combine Nui’s index-linked trading technology and then layer our trade data with the global market intelligence of StoneX to build a more relevant futures curve for Mexican dairy customers working with Interfood,” says Ronald K. O'Brien II, President of Nui Markets Americas.
Nui is growing with its clients as the digitisation of the commodity market rapidly accelerates. It is no longer just about enabling trade but changing the way of trade. Innovative companies like Interfood and StoneX are increasingly interested in getting ahead of the pack with Nui’s technology, which can supercharge buy/sell and trade outcomes.
“Establishing an online platform where the category-specific dairy trade of NFDM happens in real-time will allow us to build new tighter indexes that better serve our customers, who are currently limited to settle based on the CME or NDPSR as their main basis of risk management,” says Manuel van Engelen, Commercial Director of Interfood Americas S.A.
To create a new index capable of settling financial derivatives, the information needs to be public so it can be verified, validated, referenced, and cross-checked. Nui and Interfood will share the trade data transparently with StoneX, a leading global financial services network, to ensure this happens.
“We always look to provide more market intelligence to our dairy market customers, and in dairy product trading, indexes are the foundation of risk management. We are eager to support any innovations that can help anticipate price changes, and we are excited to see the potential for us in OTC swap contracts as this platform develops,” says Liam Fenton, Global Head of the Dairy & Food Group at StoneX.
The three-way partnership will enable all parties to provide their customers more ability to manage risk, with increased price and negotiation transparency, guaranteed liquidity, and growing market intelligence.
Interfood will work with Nui and StoneX to establish its digital trading platform over the coming months. Interfood Exchange will initially offer bi-weekly buy/sell opportunities for NFDM between North America and Mexico, with the potential to expand to other products and regions in time. To receive further updates on the development of the Interfood platform, interested parties can register here.
About Nui Markets
Nui Markets is leading the digital transformation of how the world trades agricultural products by combining the speed and convenience of a digital trading platform with the expertise of a category-specific marketplace. More than a digital enabler, our intuitive platforms offer real-time data and market knowledge, empowering buyers and sellers to trade with improved price transparency and market efficiency - a must in an increasingly volatile industry with ever-changing global supply chain needs.
Our platform offers sales and procurement workflows, either through single specific bids or offers on a marketplace. It covers post-trade execution and documentation and supports communicating with buyers. Run via web applications, we ensure easily deployable trading 24/7, 365 days a year.
About Interfood
Established in the Netherlands in 1970, Interfood is a family-owned global dairy solutions provider with a 50-year legacy. Distributing over 1.1 million MT of products annually through 14 global offices, we offer comprehensive services including dairy risk management, supply chain solutions, and sustainability initiatives. Serving over 3,000 partners across 100+ countries, our financial robustness is demonstrated by €3.6 billion in sales. At our core, we're committed to a sustainable food future, working 'Together for better’.
About StoneX Dairy
StoneX Dairy is a leading supplier of data, analysis, and risk management in the dairy industry, working with the vast majority of the top dairy companies globally. The team has dedicated analysts with decades of hands-on experience helping dairy businesses navigate volatility through direct consultancy, risk management services and StoneX Plus, the dairy industry’s leading platform for data analysis and market insight.
About StoneX Group Inc.
StoneX Group Inc., through its subsidiaries, connects clients with the global markets across a broad array of asset classes – providing execution, post-trade settlement, clearing and custody services through one trusted partner. Clients use its global financial services network to pursue trading opportunities, make investments, manage their market risk, and improve their performance. A publicly traded company (NASDAQ: SNEX) headquartered in New York City, StoneX Group Inc. and its 4,000+ employees serve more than 52,000 commercial, institutional, and global payments clients, and 400,000 active retail accounts, from more than 80 offices spread across six continents.
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