MARKET DEVELOPMENT
RBD Palm Olein Futures To Be Launched On June 16
RBD Palm Olein Futures To Be Launched On June 16
14/06/2014 (Bernama) - Malaysia will start a futures contract for refined, bleached and deodorised (RBD) palm olein futures contract on June 16, said Bursa Malaysia Derivatives Bhd (BMD) Chief Executive Officer Chong Kim Seng.
"Now refining margins can start be hedged and locked, on a similar platform as what BMD offers for crude palm oil (CPO).
"It could also be used to hedge against the risk of crop-damaging weather which makes prices volatile, and will benefit the exporters and importers of the RBD palm olein," he said on the sidelines PhilipCapital fifth annual investment conference here Saturday.
Being a refined palm product, RBD palm olein futures contract (FPOL) specifically provided palm refiners, end users of palm olein and foreign palm olein importers a transparent price discovery, regulated trading and hedging instrument, he said.
Chong was confident that the new palm olein futures or FPOL would match the success of the CPO Futures contract (FCPO), which is now the global price benchmark for the palm oil industry, with about 200 million metric tonnes traded last year.
Bursa Malaysia is also looking at rubber futures contracts, said Chong, without giving specific timeframes.
It is appropriate for Malaysia as one of the largest rubber producing countries to come out with a powerful "producer country benchmark", he said, adding that rubber futures at the Tokyo Commodity Exchange and Shanghai Rubber Futures are from consumer countries.
Meanwhile, PhilipCapital Malaysia Group Managing Director Andy Lim Say Kiat said the RBD palm olein futures contract, which will trade in US dollar, will attract new players especially foreigners.
Via FPOL, global fund managers, commodity trading advisers and proprietary traders are able to gain exposure to one of the largest edible oils in the world.
"The Palm olein futures are also traded on China's Dalian Commodities Exchange, thus it could give arbitraging opportunity to traders," he added.
Lim said 1,500 participants joined today's conference, to learn about the investment outlook and strategies for the second half of 2014, as well as listen to discussions on contemporary issues and challenges prevailing the financial and economic landscape.
"We definitely have to have this gathering again next year, at a bigger place," he said, anticipating a bigger crowd next year.
"Now refining margins can start be hedged and locked, on a similar platform as what BMD offers for crude palm oil (CPO).
"It could also be used to hedge against the risk of crop-damaging weather which makes prices volatile, and will benefit the exporters and importers of the RBD palm olein," he said on the sidelines PhilipCapital fifth annual investment conference here Saturday.
Being a refined palm product, RBD palm olein futures contract (FPOL) specifically provided palm refiners, end users of palm olein and foreign palm olein importers a transparent price discovery, regulated trading and hedging instrument, he said.
Chong was confident that the new palm olein futures or FPOL would match the success of the CPO Futures contract (FCPO), which is now the global price benchmark for the palm oil industry, with about 200 million metric tonnes traded last year.
Bursa Malaysia is also looking at rubber futures contracts, said Chong, without giving specific timeframes.
It is appropriate for Malaysia as one of the largest rubber producing countries to come out with a powerful "producer country benchmark", he said, adding that rubber futures at the Tokyo Commodity Exchange and Shanghai Rubber Futures are from consumer countries.
Meanwhile, PhilipCapital Malaysia Group Managing Director Andy Lim Say Kiat said the RBD palm olein futures contract, which will trade in US dollar, will attract new players especially foreigners.
Via FPOL, global fund managers, commodity trading advisers and proprietary traders are able to gain exposure to one of the largest edible oils in the world.
"The Palm olein futures are also traded on China's Dalian Commodities Exchange, thus it could give arbitraging opportunity to traders," he added.
Lim said 1,500 participants joined today's conference, to learn about the investment outlook and strategies for the second half of 2014, as well as listen to discussions on contemporary issues and challenges prevailing the financial and economic landscape.
"We definitely have to have this gathering again next year, at a bigger place," he said, anticipating a bigger crowd next year.