Business Daily from THE HINDU group of publications
Wednesday, May 09, 2007
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Business Daily from THE HINDU group of publications Wednesday, May 09, 2007 ePaper |
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Agri-Biz & Commodities
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Oilseeds & Edible Oil JADE launching crude palm oil futures Our Bureau
Mumbai May 8 The Singapore-based Joint Asian Derivatives Exchange (JADE) will launch its crude palm oil (CPO) futures contract on June 6. An electronic derivative market, JADE is a joint venture between the Chicago Board of Trade and Singapore Exchange. When launched, JADE's CPO futures will compete with Bursa Malaysia's CPO contracts. This contract is a result of market feedback and research involving global participants in the physical crude palm oil market. Its design will meet the growing international demand for risk management tools for crude palm oil from producers, processors and the emerging bio-fuel industry, Mr Benjamin Foo, CEO, was quoted as saying in a press release. A senior exchange official told Business Line that oil palm plantation companies, especially in Indonesia, would actively participate, to hedge their price risks. The contract, denominated in dollars, will be settled with physical delivery at the ports of Belawan and Dumai, Indonesia. As part of the launch promotions, the exchange will be providing clearing fee rebates until August 31, the release said. It will be traded exclusively on the global e-cbot{lcub}logicalnot_shy{rcub} platform and will be cleared by the derivatives clearing of the Singapore Exchange137,2007/5/8/16/14/52,bljot{gt} (SGX-DC)137{gt}. 252{gt}This is the first time that a CPO futures contract will be listed for trading during the US trading day, enabling more hedgers and traders to trade the contract. 252{gt}The contract will trade from 10.30 a.m. to 6 p.m. (Singapore time), followed by a special one hour session from 9.30 am to 10.30 a.m (Chicago time). 252{gt}Indian importers and traders would be closely watching the new Singapore market. CPO constitutes over 50 per cent of the 45-50 lakh tonnes 137,2007/5/8/16/12/16,bljot{gt}tons137{gt} of the country's 137,2007/5/8/16/12/24,bljot{gt}India's137{gt} vegetable oil imports. Both food and non-food industry participants show interest in CPO prices. In the context of surging prices of the commodity on account of demand generated by the burgeoning bio-diesel industry the contract assumes significance for various stakeholders. /body{gt}
More Stories on : Oilseeds & Edible Oil | Commodity Exchanges
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