ID :
166580
Tue, 03/08/2011 - 16:08
Auther :
Shortlink :
https://oananews.org//node/166580
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MALAYSIA'S CPO FUTURES MARKET ATTRACTS INTERNATIONAL ATTENTION
KUALA LUMPUR, March 8 (Bernama) -- Malaysia's crude palm oil (CPO) futures market has continued to attract strong international attention.
It positioned the country as the preferred benchmark for the pricing of palm oil and palm-based products, Plantation Industries and Commodities Minister Bernard Dompok said Tuesday.
Speaking at the Palm and Lauric Oils Conference and Exhibition 2011 here, he said the government would continue to support initiatives to encourage access not only to the Malaysian CPO physical market but also its futures market.
He said Bursa Malaysia Derivatives had chartered outstanding performance in terms of high volume of contracts and open positions for CPO futures.
In November 2010, the CPO futures hit a record monthly volume and an all-time-high of 450,000 contracts, surpassing the previous record of 440,000 contracts achieved in April 2009.
In the case of daily volume, the CPO futures reached a record high of 42,000 contracts on Nov 18, 2010, surpassing the previous record of 37,000 contracts achieved on June 13, 2007.
"These historical volume and open interest records clearly signify the sustained interest in the liquid CPO futures contracts from derivatives traders who value the opportunities for hedging and arbitraging in the volatile market," Dompok said.
He told reporters later that the biggest challenge for the Malaysian palm oil industry was to increase productivity with limited suitable land available for production despite a robust growth in the industry.
"While I'm optimistic of the oil palm sector's contribution towards economic growth in the longer term, we must also be adverse to the challenges in ensuring the resilience of this sector," he said.
In this context, he reiterated that Malaysian palm oil is produced through sustainable practices and the country would continue addressing unfounded allegations and provide assurance to buyers.
It positioned the country as the preferred benchmark for the pricing of palm oil and palm-based products, Plantation Industries and Commodities Minister Bernard Dompok said Tuesday.
Speaking at the Palm and Lauric Oils Conference and Exhibition 2011 here, he said the government would continue to support initiatives to encourage access not only to the Malaysian CPO physical market but also its futures market.
He said Bursa Malaysia Derivatives had chartered outstanding performance in terms of high volume of contracts and open positions for CPO futures.
In November 2010, the CPO futures hit a record monthly volume and an all-time-high of 450,000 contracts, surpassing the previous record of 440,000 contracts achieved in April 2009.
In the case of daily volume, the CPO futures reached a record high of 42,000 contracts on Nov 18, 2010, surpassing the previous record of 37,000 contracts achieved on June 13, 2007.
"These historical volume and open interest records clearly signify the sustained interest in the liquid CPO futures contracts from derivatives traders who value the opportunities for hedging and arbitraging in the volatile market," Dompok said.
He told reporters later that the biggest challenge for the Malaysian palm oil industry was to increase productivity with limited suitable land available for production despite a robust growth in the industry.
"While I'm optimistic of the oil palm sector's contribution towards economic growth in the longer term, we must also be adverse to the challenges in ensuring the resilience of this sector," he said.
In this context, he reiterated that Malaysian palm oil is produced through sustainable practices and the country would continue addressing unfounded allegations and provide assurance to buyers.
