Products
Bursa Malaysia DCE Soybean Oil Futures (FSOY)
Bursa Malaysia DCE Soybean Oil Futures Contract (FSOY) is a futures contract licensed from Dalian Commodity Exchange (DCE), whereby DCE Soybean Oil Futures contract's final settlement price is used as a basis to calculate FSOY's final settlement price in US Dollar.
Soybean oil is one of the major vegetable oils, second only in consumption to palm oil. It is a byproduct of crushing soybeans to produce soybean meal and soybean oil. Primarily used for human consumption, processed soybean oil is also utilised as feedstock for biodiesel production. China is currently the largest consumer of soybean oil and the top importer of soybeans.
Contract Specifications | |
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Contract Code | FSOY |
Underlying Instrument | Crude Soybean Oil (Quality Standard as per the Soybean Oil Futures Contract of Dalian Commodity Exchange (“DCE”) (“DCE Soybean Oil Futures Contract”) |
Contract Unit | 25 metric tons (25,000 kilogrammes) |
Minimum Price Fluctuation | USD 0.25 per metric ton |
Price Limits | 1. With the exception of trades in the spot month, trades of the Contract in any of the contract months must not be made, during any Business Day, at prices varying more than a prescribed percentage above or below the settlement prices of the preceding Business Day (“Price Limits”), as determined by the Exchange. 2. For the purpose of paragraph (1) above, the price limits (in percentages) of the DCE Soybean Oil Futures Contract will be used to calculate the Price Limits unless the Exchange determines otherwise due to market conditions. |
Contract Months | January, March, May, July, August, September, November, December |
Trading Hours | Morning trading session: 0900 hours to 1230 hours (Malaysia time); Afternoon trading session: 1330 hours to 1800 hours (Malaysia time); and After-hours (T+1) trading session: 2100 hours to 2330 hours (Malaysia time, Monday to Thursday only). |
Final Trading Day | 1. DCE’s 10th trading day of the delivery month. 2. If DCE’s 10th trading day falls on a day which is not a Business Day, the Final Trading Day will be on the Business Day immediately preceding DCE’s 10th trading day. 3. Trading in the spot month ceases at 1500 hours (Malaysia time) on the Final Trading Day. |
Settlement Method | Cash settlement based on the final settlement value. |
Final Settlement Value And Contract Settlement |
1. The final settlement value will be calculated using the DCE Soybean Oil Futures Contract’s one-off delivery settlement price on DCE’s 10th trading day of the delivery month, adjusted for conversion from Renminbi (“CNY”) into USD rounded to the nearest USD 0.25. 2. The calculation of the final settlement value will be based on the CNY Central Parity Rate for USD/CNY as at 0915 hours (Malaysia time) published on DCE’s 10th trading day of the delivery month by the People’s Bank of China as per the link below: 3. The Contract will be settled on DCE’s 10th trading day of the delivery month. 4. If DCE’s 10th trading day of the delivery month falls on a day which is a non-Business Day, the Contract will be settled on the Business Day immediately after DCE’s 10th trading day of the delivery month. |
Why Trade FSOY? |
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- Global Access
FSOY is tradable electronically on CME GLOBEX®, a global electronic trading platform that is widely used by individual and professional traders worldwide.
- Access to Chinese Soybean Oil Price
As the settlement price of DCE Soybean Oil Futures is used as the basis to calculate the cash settlement price of FSOY, traders can gain exposure to the Chinese Soybean Oil pricing through Bursa Malaysia Derivatives. Physical players exporting soybean products to China can hedge their price risk with FSOY as an alternative option to DCE’s Soybean Oil Futures.
- Capture Arbitrage Opportunities
Comparing the prices of palm oil and soybean oil is a standard business practice as these commodities are common substitutes. Having the futures contract of both commodities listed on Bursa Malaysia Derivatives enables traders to effectively capture arbitrage opportunities by building spread trading strategies between these two products and simultaneously benefiting from capital efficiencies with margin offset.
- Regulated Trading
Trade with confidence in a secure and transparent marketplace regulated by the Securities Commission Malaysia, providing a reliable framework for all trading activities.
Resources for Download |