THE Palm and Lauric Oils Conference & Exhibition Price Outlook (POC
2010) was a lot more crowded than last year and there were more
Americans.
The higher turnout was in anticipation of CME Group
announcing the launch of its new US dollar-denominated cash-settled CPO
futures contract, called CUPO, on CME Globex electronic trading
platform.
Traders in Chicago get to trade CUPO from May 23 this
year but those in Kuala Lumpur will get access to it on May 24 due to
the 12-hour difference.
CME Group vice-chairman Tim Andriesen
said the opportunity to work with partner Bursa Malaysia enables it to
offer a contract that meets the growing demand for trading palm oil, one
of the world’s most widely used commodities, on CME Globex, the same
electronic trading platform as CME Group’s existing suite of
agricultural products.
Bigger Crowd, More Americans at Palm Oil Meet
“Food processers, commercial firms and other multinational companies
that use crude palm oil and trade in US currency now have an
alternative for hedging that risk,” he told an audience of 1,800 traders
and oil palm planters from some 50 countries who flew in to Kuala
Lumpur this week.
Andriesen also said that the creation of its
US dollar futures contract for palm oil would create opportunities for
cross-trading with soyabean oil, based on the historically strong
correlation between these products.
Together, palm oil and
soyabean oil account for about 61 per cent of all edible oils in the
world.
True to the theme “Global Connectivity – Raise the Game”,
it was a historic moment as Bursa Malaysia Derivatives moved closer to
integrate its trading platform with CME Group, the world’s largest
derivatives exchange for grains, livestock, oilseeds, dairy and timber.
At
the gala dinner, Kenanga Deutsche Futures Sdn Bhd, a subsidiary of
K&N Kenanga Holdings Bhd, emerged the best overall performer for the
seventh consecutive year in attracting the biggest trades into Bursa
Malaysia Derivatives Exchange.
“We strive to challenge
ourselves to maintain our position as the leading futures brokerage in
Malaysia,” Ng Chin Leng, executive director of Kenanga Deutsche Futures
Sdn Bhd, said at the award ceremony.
All in, brokers and
traders agreed that that the latest POC series was more vibrant and
well-received.
Source : Business Times
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