StoneX and agri-food intelligence platform Expana have jointly launched the first contract in a new suite of over-the-counter dairy derivatives, with Fat Filled Milk Powder (FFMP) now available for trading. The move is designed to address a longstanding gap in hedging tools available to the global dairy industry.
The FFMP contract is underpinned by Expana's IOSCO Assured EU dairy benchmark prices and represents the first product to emerge from a broader collaboration between the two firms, which is expected to expand to additional dairy commodities over time.
StoneX customers can access the new contracts directly within their existing trading workflows. They can also use the StoneX Plus platform to view and analyse historical FFMP prices alongside other selected Expana dairy benchmarks.
The dairy industry has historically lacked direct hedging mechanisms for many of its products, with price risk often absorbed or passed along the supply chain rather than being actively managed. The companies believe the new derivatives suite will give market participants a reliable and trusted pricing reference regardless of their position in the market.
Liam Fenton, Global Head of Dairy and Food Group at StoneX, described the launch as a "strong foundation for our partnership with Expana."
Marcel Goldenberg, Co-Chief Market Reporting Officer at Expana, stated: "This product delivers a price for FFMP that every participant in the market can trust, regardless of which side of the trade they are on and delivers arbitrage opportunities against Skimmed Milk Powder and Vegetable Oils that were previously not available."
Fast facts
Product launchedFat Filled Milk Powder (FFMP) OTC derivative contractCompanies involvedStoneX and ExpanaPricing benchmarkExpana's IOSCO Assured EU dairy benchmark pricesAccess pointExisting StoneX trading workflows and StoneX Plus platformScopeFirst contract in a planned suite covering additional dairy commodities
Why it matters
FFMP previously had no direct OTC hedging instrument, meaning price risk was typically absorbed or passed along the supply chain rather than actively managed — the new contract gives participants a structured alternative.
The IOSCO Assured benchmark underpinning the contract provides a standardised pricing reference, which is a prerequisite for counterparties on both sides of a trade to agree on fair value.
Expana's co-CMRO explicitly identifies arbitrage opportunities against Skimmed Milk Powder and Vegetable Oils as a concrete new capability the contract enables — a cross-commodity dynamic not previously available in structured form.
