MARKET DEVELOPMENT
Dalian Commodity Exchange : The 8th CIOC Kicks off
Dalian Commodity Exchange : The 8th CIOC Kicks off
18/11/2013 (4-Traders) - The 8th China International Oils and Oilseeds Conference (CIOC) jointly sponsored by Dalian Commodity Exchange (DCE) and Bursa Malaysia Derivatives (BMD) will be grandly held in Guangzhou on November 13 and 14. Attending and addressing the opening ceremony were Chen Yunxian, Deputy Governor of Guangdong Province, Liu Xingqiang, DCE Chairman, Dato' Tajuddin Atan, Chairman of BMD, and YB Dato' Wan Mohammad Khair-il Anuar Wan Ahmad, Chairman of Malaysian Palm Oil Board (MPOB). The opening ceremony was presided over by DCE CEO Li Zhengqiang.
When addressing the conference, Chen Yunxian pointed out that the Guangdong Provincial Party Committee and the Guangdong Provincial Government have always attached great importance to the healthy development of the grain and oil industries and the stable supply of the products, given full play to the fundamental role of the market mechanism in allocating the grain and oil resources, focused on fostering a number of key grain and oil enterprises and encouraged the enterprises to use the futures market and other financial instruments for hedging against risks. With 120 futures brokerage company branches at present, Guangdong Province has created a sound environment for the grain and oil enterprises to use the futures market in promoting the healthy development. Next, Guangdong will actively advance the financial reform and innovation, accelerate the transformation of the financial development mode, vigorously promote the competition on the futures market, further expand the business of the futures companies, and constantly optimize the financial ecological environment.
In his speech, Liu Xingqiang said that as the most advantageous and characterized products series of DCE, the oils and oilseeds series have always played a leading role in the industry. For a long time, DCE has constantly adapted to the changes in the spot market and the industrial development, making efforts to improve itself. This year, DCE has taken a series of measures to improve the hedging and arbitrage rules, reduce the costs of trading and delivery and facilitate the participation of the investors. Currently, the futures prices of oils and oilseeds have become not only an important basis for the producers to choose the varieties of crops and determine the selling prices but also an important reference for the enterprises to control the pace of procurement and sales and reasonably determine the optimal inventory level; the futures products such as soybean meal and soybean oil have seen the active trading of contracts of near months, and a lot of industrial participants have engaged in the hedging in the futures market for a long time to hedge against the price risks in the spot market.
Liu also said that in the next stage, DCE will actively explore new areas of the agricultural futures products, constantly enrich the futures products series of agriculture, forestry and livestock, improve the structure of all kinds of futures products including the oils and oilseeds, and strive to get the options listed at an early date so as to provide more as well as more effective hedging instruments for the industrial development. Meanwhile, DCE will continue to step up the revision and improvement for the rules and systems of the existing products, improve efficiency and meet the demands for the development of the market by introducing a series of institutional innovations in the near future such as the warehouse receipts swap and the 3-step delivery mode.
Dato' Tajuddin said in the speech that the BMD has a long history, with all derivatives products transferred to the CME global electronic trading system in 2012, and the open interest of the contracts reaching 150,000 contracts at present. He also said that as Malaysia plays an important role in palm oil exports, he expects to continue to work with DCE to promote the bilateral cooperation.
Khair-il said in his speech that China is Malaysia's largest merchandise trading partner, with the trade of the palm oil and other products amounting to US$ 4.1 billion in 2012. He said that Malaysia encourages the palm oil industry to create more international partnerships to achieve greater global competitiveness.
This year has seen international political and economic complexity and volatility, and China's economic development is also in the face of the challenges of restructuring and transformation and upgrading. Recently, various uncertainties affecting the international agricultural products markets have exacerbated the global supply of agricultural products and the price fluctuations. Although Malaysia's palm oil production is at its peak, the inventory reduction and the steadily declining domestic stock pushed the price index of the palm oil futures up 14.05% in October, there were significantly more enterprises seeking hedging in the market, the open interest of the soybean oil futures contracts hit a new high of 1.28 million contracts and all market participants were highly concerned about the supply and demand pattern of the oils and oilseeds market and the tendency of prices. In the session of one and a half days, a total of 12 domestic and foreign experts from Chinese Academy of Social Science, the National Development and Reform Commission, CME Group and relevant investment consultancy companies delivered keynote speeches on the macroeconomic situation, the agriculture policies, arbitrage and options trading of agricultural products, supply and demand on global palm oil market, the supply, demand and trading modes of vegetable oils in China and other topics. In addition, the conference has set up two specialized forum for discussions on the two topics of the cross-market arbitrage and the development and prospects of the oils and oilseeds markets, with a total of 12 forum speakers participating in the interactions.
It is learnt that the conference has been supported by the government agencies and industry organizations such as MPOB, China National Association of Grain Sector, China Soybean Industry Association and the National Grain and Oil Information Center. Attending the conference were the experts and representatives of the enterprises related to the oil and oilseed industry, futures companies and futures investors from the United States, Australia, Britain, India, Malaysia and other countries and regions. The conference has been actively received by the oil and oilseed industry and the futures sector with the industrial clients accounting for 70% of the total.
According to the sources, the CIOC, after the previous seven sessions and with a total of nearly 5,000 attendees from the oil and oilseed industry and the futures sector, has become an important platform for domestic and foreign relevant government departments, industry organizations, spot companies and financial investment institutions to communicate and seek common development, playing a crucial role in promoting the integration of the spot and futures market and pushing forward the industrial development.
When addressing the conference, Chen Yunxian pointed out that the Guangdong Provincial Party Committee and the Guangdong Provincial Government have always attached great importance to the healthy development of the grain and oil industries and the stable supply of the products, given full play to the fundamental role of the market mechanism in allocating the grain and oil resources, focused on fostering a number of key grain and oil enterprises and encouraged the enterprises to use the futures market and other financial instruments for hedging against risks. With 120 futures brokerage company branches at present, Guangdong Province has created a sound environment for the grain and oil enterprises to use the futures market in promoting the healthy development. Next, Guangdong will actively advance the financial reform and innovation, accelerate the transformation of the financial development mode, vigorously promote the competition on the futures market, further expand the business of the futures companies, and constantly optimize the financial ecological environment.
In his speech, Liu Xingqiang said that as the most advantageous and characterized products series of DCE, the oils and oilseeds series have always played a leading role in the industry. For a long time, DCE has constantly adapted to the changes in the spot market and the industrial development, making efforts to improve itself. This year, DCE has taken a series of measures to improve the hedging and arbitrage rules, reduce the costs of trading and delivery and facilitate the participation of the investors. Currently, the futures prices of oils and oilseeds have become not only an important basis for the producers to choose the varieties of crops and determine the selling prices but also an important reference for the enterprises to control the pace of procurement and sales and reasonably determine the optimal inventory level; the futures products such as soybean meal and soybean oil have seen the active trading of contracts of near months, and a lot of industrial participants have engaged in the hedging in the futures market for a long time to hedge against the price risks in the spot market.
Liu also said that in the next stage, DCE will actively explore new areas of the agricultural futures products, constantly enrich the futures products series of agriculture, forestry and livestock, improve the structure of all kinds of futures products including the oils and oilseeds, and strive to get the options listed at an early date so as to provide more as well as more effective hedging instruments for the industrial development. Meanwhile, DCE will continue to step up the revision and improvement for the rules and systems of the existing products, improve efficiency and meet the demands for the development of the market by introducing a series of institutional innovations in the near future such as the warehouse receipts swap and the 3-step delivery mode.
Dato' Tajuddin said in the speech that the BMD has a long history, with all derivatives products transferred to the CME global electronic trading system in 2012, and the open interest of the contracts reaching 150,000 contracts at present. He also said that as Malaysia plays an important role in palm oil exports, he expects to continue to work with DCE to promote the bilateral cooperation.
Khair-il said in his speech that China is Malaysia's largest merchandise trading partner, with the trade of the palm oil and other products amounting to US$ 4.1 billion in 2012. He said that Malaysia encourages the palm oil industry to create more international partnerships to achieve greater global competitiveness.
This year has seen international political and economic complexity and volatility, and China's economic development is also in the face of the challenges of restructuring and transformation and upgrading. Recently, various uncertainties affecting the international agricultural products markets have exacerbated the global supply of agricultural products and the price fluctuations. Although Malaysia's palm oil production is at its peak, the inventory reduction and the steadily declining domestic stock pushed the price index of the palm oil futures up 14.05% in October, there were significantly more enterprises seeking hedging in the market, the open interest of the soybean oil futures contracts hit a new high of 1.28 million contracts and all market participants were highly concerned about the supply and demand pattern of the oils and oilseeds market and the tendency of prices. In the session of one and a half days, a total of 12 domestic and foreign experts from Chinese Academy of Social Science, the National Development and Reform Commission, CME Group and relevant investment consultancy companies delivered keynote speeches on the macroeconomic situation, the agriculture policies, arbitrage and options trading of agricultural products, supply and demand on global palm oil market, the supply, demand and trading modes of vegetable oils in China and other topics. In addition, the conference has set up two specialized forum for discussions on the two topics of the cross-market arbitrage and the development and prospects of the oils and oilseeds markets, with a total of 12 forum speakers participating in the interactions.
It is learnt that the conference has been supported by the government agencies and industry organizations such as MPOB, China National Association of Grain Sector, China Soybean Industry Association and the National Grain and Oil Information Center. Attending the conference were the experts and representatives of the enterprises related to the oil and oilseed industry, futures companies and futures investors from the United States, Australia, Britain, India, Malaysia and other countries and regions. The conference has been actively received by the oil and oilseed industry and the futures sector with the industrial clients accounting for 70% of the total.
According to the sources, the CIOC, after the previous seven sessions and with a total of nearly 5,000 attendees from the oil and oilseed industry and the futures sector, has become an important platform for domestic and foreign relevant government departments, industry organizations, spot companies and financial investment institutions to communicate and seek common development, playing a crucial role in promoting the integration of the spot and futures market and pushing forward the industrial development.