Bursa Malaysia Derivatives Berhad (BMD), operates the most liquid and successful crude palm oil futures (FCPO) contract in the world. On September 17, 2009, Bursa Malaysia Berhad entered into a strategic partnership with Chicago Mercantile Exchange (CME) with the view to improve accessibility to its derivatives offerings globally. This includes licensing of the settlement prices of the FCPO to position Malaysia as the global price benchmark for the commodity as well as global distribution of Bursa Malaysia's products through the Globex electronic trading platform.
BMD has the following palm oil products available to be traded on the CME Globex ® electronic trading platform:
Commodity Derivatives
- Crude Palm Oil Futures (FCPO)
- USD Crude Palm Oil Futures (FUPO)
- Crude Palm Kernel Oil Futures (FPKO)
Crude Palm Oil Futures (FCPO)
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Crude Palm Kernel Oil Futures (FPKO)
| Contract Code | FPKO | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Underlying Instrument | Crude Palm Kernel Oil | ||||||||
| Contract Size | 25 metric tons | ||||||||
| Minimum Price Fluctuation | RM1 per metric ton | ||||||||
| Daily Price Limits | RM100 per metric ton above or below the preceding day's Settlement Prices for all months, except spot month. Limits are expanded when the Settlement Prices of all three quoted months immediately following the current month, in any day, are at limits as follows:
Daily price limits will remain at RM200, when the preceding day's settlement prices of all the three quoted months immediately following the spot month settle at limits of RM200. Otherwise, it shall revert to the basic limit amount of RM100. | ||||||||
| Contract Months | Spot and the next five succeeding months, and thereafter, alternate months up to 12 months ahead. | ||||||||
| Trading Hours | First trading session: Malaysian 10:30 a.m. to 12:30 p.m. Second trading session: Malaysian 3:00 p.m. to 6:05 p.m. | ||||||||
| Final Trading Day and Maturity Date | Contract expires at 12:05 on the 15th day of the delivery month. If the 15th is a non-market day, the preceding Business Day. | ||||||||
| Tender Period | First Business Day to the 20th Business Day of the delivery month, or if the 20th is a non-market day, the preceding Business Day. | ||||||||
| Contract Grade and Delivery Points | Each tender shall consists of 25 metric tons of Crude Palm Kernel Oil in bulk unbleached of good merchantable quality and stored at a Port Tank Installations located at the option of the seller at Port Kelang, Penang/Butterworth and Pasir Gudang (Johor). Free Fatty Acids (FFA) content (as Lauric Acid of CPKO) delivered into Port Tank Installations shall not exceed 3.5% and out of Port Tank Installations shall not exceed 4%. Moisture and impurities shall not exceed 0.5%. Iodine value at range 16.5 < 18.75 Colour range 4 Red - 8 Red & 60 Yellow Max. | ||||||||
| Delivery Unit | 25 metric tons, plus or minus not more than 2%. Settlement of weight differences shall be based on the simple average of the daily Settlement Prices of the delivery month from: (a) the 1st Business Day of the delivery month to the day of tender, if the tender is made before the last trading day of the delivery month; or (b) the 1st Business Day of the delivery month to the Business Day immediately preceding the last day of trading, if the tender is made on the last trading day or thereafter. | ||||||||
| Position Limit | 250 contracts net long or net short on the spot month. 1,000 contracts on any single month except for the spot month. 1,500 contracts on all contract months combined. |
USD Crude Palm Oil Futures (FUPO)
FUPO is a USD denominated palm oil futures contract which compliments the existing MYR denominated Crude Palm Oil Futures contract (FCPO). It is a cash settled contract which does not involve physical delivery of the underlying Crude Palm Oil (CPO). FUPO also consolidate Malaysia’s position as the leading price discovery centre for palm oil traded globally.
| Contract Code | FUPO |
|---|---|
| Underlying Instrument | Crude Palm Oil |
| Contract Size | 25 metric tons |
| Minimum Price Fluctuation | USD0.25 per metric ton |
| Settlement Methodlogy | Cash Settled |
| Daily Price Limits | A +/- 10% limit from the Settlement Prices of the preceding trading day will apply for all contract months, except for the spot month. When at least 3 non-spot month contracts are trading at the 10% limit, a 10 minute Cooling Off period will apply for all quoted months (except spot month as there are no price limits for spot month contract) during which trading shall only take place within the 10% Limit. Following the Cooling Off period, all quoted months shall be interrupted for 5 minutes, after which the price limit will be expanded to +/-15%. The 10% price limit will apply for the rest of the 1st trading session if the price limit is triggered less than 30 minutes before the end of session, and the price limit will be expanded to 15% for the 2nd trading session. If the 10% limit is triggered less than 30 minutes before the end of the 2nd trading session, the 10% limit will apply for the rest of the trading day. |
| Contract Months | Spot month and the next 5 succeeding months, and thereafter, alternate months up to 24 months ahead |
| Trading Hours | First trading session : Malaysian Time: 10:30 a.m. to 12:30 p.m. Second trading session : Malaysian Time: 3:00 p.m. to 6:00 p.m. |
Speculative Position Limits |
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| Final Trading Day and Maturity Date | Contract expires at noon on the 15th day of the spot month, or if the 15th is a nonmarket day, the preceding Business Day. |
| Final Settlement | Cash settlement based on the Final Settlement Value. |
| Final Settlement Price | The average price of the Daily Spot Month Settlement Price of the FCPO on the last 5 Business Days prior to the expiration including the Final Trading Day. The mid exchange rate of USD/MYR as at 6.00pm on each of the 4 Business Days prior to the Final Trading Day taken from Bank Negara Malaysia shall be used as the conversion price for the calculation of FCPO Daily Spot Month Settlement Value (Mid price USD/MYR multiplied by the Daily Spot Month Settlement Price of FCPO). The mid Exchange rate of USD/MYR as at noon will be used for calculation of Daily Spot Month Settlement Price for the Final Trading Day. The FUPO Final Settlement Value shall be the average of the converted FCPO Daily Spot Month Settlement Prices rounded to the nearest 25 cents. |
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