媒体新闻稿
BURSA MALAYSIA DERIVATIVES ACHIEVES NEW RECORD-HIGH OPEN INTEREST, INDICATING POSITIVE CRUDE PALM OIL MARKET SENTIMENTS
Bursa
Malaysia Derivatives Berhad (“Bursa Malaysia Derivatives” or the “Exchange”) reported an all-time high in daily
open interest for its benchmark price-setting Crude Palm Oil Futures (“FCPO”)
contract, demonstrating the strength behind bullish
sentiment in the crude palm oil market. Open interest for FCPO reached
a record breaking 299,190 contracts on 14 March 2024, surpassing the previous high
of 287,859 on 10 September 2014. This coincides with a new peak in combined
open interest for all products, totalling 360,132 contracts, exceeding the previous highest of 346,403 contracts on
26 February 2020. Open interest has remained at a steady high throughout the
week; Yesterday’s closing was at 291,127 contracts for FCPO and 352,054
contracts for all products combined.
Open
interest, which is the total number of outstanding futures or options contracts
at the end of a trading day, acts as a vital gauge for market sentiment and the
momentum behind price trends. The rising open interest in FCPO since mid-February
2024 reflects increased market participation, in part driven by the recent positive
outlook on Crude Palm Oil (“CPO”) prices. This sentiment was reinforced by
industry insights and analyses presented earlier this month at Bursa Malaysia’s
35th Palm & Lauric Oils Price Outlook Conference &
Exhibition (“POC2024”), which serves as a key platform for decision makers and
thought leaders in the global edible oils industry.
Adding to
the positive momentum, Malaysian FCPO witnessed their highest closing in over a
year on 13 March 2024. The benchmark third-month contract strengthened by RM66,
or 1.6%, to close at RM4,195 - its highest closing since 9 March 2023. This performance,
buoyed by the strength in rival edible oils and firmer crude oil prices, highlights
the interconnected dynamics of the palm oil market.
Mohd Saleem
Kader Bakas, Director of Bursa Malaysia Derivatives, remarked, “As the
landscape for edible oil market evolves, our record-breaking open interest
underscores the value our clients place in Bursa Malaysia Derivatives’
platform. This surge, particularly in the FCPO market, amidst the dynamic
shifts post-pandemic and in geopolitical landscapes, demonstrates our market’s
capability to adapt and serve as a critical hub for effective price risk
management. It not only reflects our market’s depth and liquidity but also
affirms Malaysia’s strategic position as the global trading hub for edible oils,
aligning with our aim to cater to the complex needs of international
participants in these changing times.”
The
introduction of the Bursa Malaysia DCE Soybean Oil Futures (“FSOY”) contract
earlier this week, through a collaboration with one of the largest commodity
exchanges in China, Dalian Commodity Exchange (“DCE”), represents a significant
advancement in diversifying Bursa Malaysia Derivatives’ commodity offerings. This
launch not only signifies the Exchange’s first venture into non-palm-based edible
oil futures but also aligns with its strategic goal to expand its commodities
portfolio. By broadening its range of derivatives products, Bursa Malaysia
Derivatives reinforces its standing as a multi-commodity global trading hub,
catering to a wide array of market needs.
For more
information on Bursa Malaysia Derivatives’ offerings, please visit https://www.bursamalaysia.com.