[ad_1]
KUALA LUMPUR: Bursa Malaysia Crude Palm Oil (FCPO) Futures Have Continued To Hit New Highs This Year, Bursa Malaysia Bhd
said President Tan Sri Abdul Wahid Omar.
In March, it reached a new record monthly trading volume of 1.66 million contracts and the highest daily trading volume with more than 125,000 contracts, it said.
Furthermore, FCPO had become a well-balanced product with an equal 50-50 share among institutional traders and other market participants, Abdul Wahid said.
“We are encouraged by the steady growth and see this as a positive development indicating the growing reliance on Bursa Malaysia Derivatives products to manage exposures to price risk,” he said in his welcome address during the Price Outlook Virtual Conference. of lauric and palm oils. Exhibition (POC) today.
Abdul Wahid also said that since its establishment in 1980, FCPO had remained the most successful commodity futures contract in Malaysia, positioning the country as the global benchmark for the crude palm oil market.
“To demonstrate the extensive use of FCPO globally as a hedging instrument, some 268 million metric tons of palm oil, FCPO’s underlying instrument, were traded in 2019, representing 3.5 times global production,” he added .
In the meantime, he said Bursa Malaysia Derivatives remained committed to strengthening the palm complex suite to meet the demand of market participants and provide a reliable hedge and arbitrage instrument against price volatility in the palm oil industry. palm despite the challenges due to the unprecedented health crisis.
With more than one million deaths and 36 million cases to date, he said that assessing the economic impact of COVID-19 remains a challenge given the extreme speed with which the crisis continues to unfold.
According to him, price volatility is no stranger to the market, but this pandemic outbreak has shaken the commodities sector.
“The reduction in demand due to the slowdown in economies around the world has caused a drop in prices and disruptions in the production and supply chain,” he said.
On the importance of sustainability, he said that Malaysia, as one of the world leaders in the palm oil industry with a 26% market share in palm oil production, was in a strong position to do the right things. and do things right.
“The Malaysian palm oil industry has led the way in sustainability certification. This is evidenced by the mandatory requirement for plantation companies to obtain Malaysia Sustainable Palm Oil Certification, or MSPO, to reinforce the commitment. to support people, the environment and wildlife.
“However, the challenges of building a sustainable future are immense and require collaborative efforts and innovative thinking from all stakeholders.
“Each of us has a role in driving the long-term sustainability of the industry, and I am confident that this POC platform will allow us to share our vision and commitment to advancing this industry,” he concluded. – Bernama
[ad_2]
