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East Malaysia’s CPO contribution surges to 46pc
Published on: Thursday, October 13, 2022
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Muhamad Umar said Bursa Malaysia’s introduction of Inter-commodity Spread between the Crude Palm Oil Futures (FCPO) and Fepo contracts on Oct 3, 2022, allowed for a seamless spread trade execution between the two contracts with a simple click of a button.He said all traders can now easily trade their viewpoints on Malaysia’s various market dynamics between Peninsular Malaysia and East Malaysia through the Inter-commodity Spread.
Muhamad Umar said Bursa Malaysia’s introduction of Inter-commodity Spread between the Crude Palm Oil Futures (FCPO) and Fepo contracts on Oct 3, 2022, allowed for a seamless spread trade execution between the two contracts with a simple click of a button.He said all traders can now easily trade their viewpoints on Malaysia’s various market dynamics between Peninsular Malaysia and East Malaysia through the Inter-commodity Spread.
Kota Kinabalu: East Malaysia’s contribution to Malaysia’s total crude palm oil (CPO) production has surged from 22 per cent in 1995 to 46 per cent in 2021, said Bursa Malaysia’s Chief Executive Office (CEO) and Bursa Malaysia Derivatives Chairman Datuk Muhamad Umar Swift.

He said the launch of the East Malaysia Crude Palm Oil Futures (Fepo) contract in October 2021 was a significant milestone in efforts to meet the hedging and trading needs of international edible oil players.

“The Fepo contract aims to provide greater price transparency for CPO in Sabah and Sarawak. 

“The price transparency enabled by Fepo allows CPO producers to sell at a competitive price and for downstream players to better manage price fluctuations of their raw materials.

“Consequently, this will improve refining margins and competitiveness in selling end products to customers,” he said in his welcoming speech at the East Malaysia Palm and Lauric Oils Price Outlook conference and exhibition, here, Wednesday.

Also present were Sabah Local Government and Housing Minister Datuk Seri Masidi Manjun, Sarawak Food Industry, Commodity and Regional Development Deputy Minister Martin Ben and Bursa Malaysia Derivatives Acting Director Mohd Saleem Kader Bakas.

Muhamad Umar said Bursa Malaysia’s introduction of Inter-commodity Spread between the Crude Palm Oil Futures (FCPO) and Fepo contracts on Oct 3, 2022, allowed for a seamless spread trade execution between the two contracts with a simple click of a button.He said all traders can now easily trade their viewpoints on Malaysia’s various market dynamics between Peninsular Malaysia and East Malaysia through the Inter-commodity Spread.

He added that all FCPO and Fepo contracts require physical deliveries to be Malaysian Sustainable Palm Oil certified, in line with Bursa Malaysia’s goal to create a sustainable marketplace.

“This makes them the world’s first physically delivered commodity derivative contracts with a sustainable requirement mandated for delivery,” he said.

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