Bursa Malaysia Bhd, operator of the nation’s stock exchange, said it expects the volume of palm- oil futures trading to more than double in the next two to three years following a stake sale and tie up with CME Group Inc.
About 20 percent of palm-oil contracts in Malaysia are traded through international investors, Bursa’s Chief Executive Officer Yusli Yusoff said. The exchange is also seeking to raise the valuation of the commodity’s derivatives, which he said are trading at a discount to other products such as soya oil.
CME “will help elevate palm oil’s visibility and close that price gap with other edible oils,” Yusli said in a Bloomberg Television interview. “We are going to leverage CME’s status as a market leader and this will help elevate the international profile of our derivatives exchange offerings.”
Bursa is counting on the agreement with the world’s largest futures market to strengthen Malaysia’s position as the global price benchmark for crude palm oil futures. It also enables CME to tap demand for palm oil trading outside Malaysia, the world’s second-largest producer.
CME will buy a 25 percent stake in Bursa’s derivatives unit and license its palm oil settlement prices to tap demand for the world’s most-traded vegetable oil, the two companies said on Sept. 17. The collaboration will lead to the listing of all existing and future Bursa Malaysia derivatives products on CME Globex, CME’s electronic trading platform, they added.
Attracting Investors
“We see this as a medium to long-term initiative,” Yusli said from Kuala Lumpur.
Bursa is looking to attract more investors to bolster trading in Malaysia’s equities and derivatives markets. The benchmark FTSE Bursa Malaysia KLCI Index has risen 39 percent this year, trailing behind Southeast Asian benchmark indexes.
Yusli also expects the number of initial share sales to increase in the next 18 months as the economy recovers, starting with Maxis Communications Bhd., Malaysia’s largest mobile-phone operator, which is expected to go public in the fourth quarter.
“We see the pipeline to be quite interesting for next 18 months,” he added.
More Recent Palm Oil News 
- CPO Ends Up On Short Covering; Rising Stocks Cap Gains
- Crude Palm Oil Ends Off Lows On Bargain-Hunting
- Crude Palm Oil Ends Off Highs On Likely Fall In Exports
- Malaysia August Palm Oil Exports Likely Down 14%-15% On Month
- Crude Palm Oil Ends Up On Soyoil, Bullish Forecast
- Analyst Mistry: Palm Oil Prices “Must Rise” To Ration Demand
- Crude Palm Oil Rises 1.8% On Aggressive Short Covering, Soyoil
- Crude Palm Oil Ends 1% Lower On Weak Aug 1-25 Export Data
- CPO Ends Down 2% On Likely Fall In Exports; May Fall More
- Crude Palm Oil Ends Down; Falling Demand, Rising Output
- Crude Palm Oil Ends Lower;Likely Higher Exports Cap Fall
- CPO Falls On Soyoil; Bad Weather In Indonesia May Support
- Crude Palm Oil Ends Down; Stocks To Rise As Exports Fall
- Crude Palm Oil Ends Lower; Price Correction Seen Timely
- Crude Palm Oil Ends Up 1.7% On Chinese Commodities, CBOT Soy
PRO Palm Oil Live Market News
- European Veg Oil PM Palm Oil & Lauric Oil Prices- Sep 2
- European Veg Oil AM Palm Oil & Lauric Oil Prices- Sep 2
- European Veg Oil AM Palm Oil & Lauric Oil Prices- Sep 2
- Census US Fats And Oils: July Production-Sep 2
- Census US Jul Fats And Oils: Consumption-Sep 2
- Census US July Fats And Oils: Stocks-Sep 2
- India Soybean Futures End Down 0.9%, At 5-Week Low
- Indonesian Physical Palm Oil Prices Sep 2
- CPO Ends Up On Short Covering; Rising Stocks Cap Gains
- SUBSCRIBERS: No India Commodity Prices Including Palm Oil – Agriculture Thursday
- Malaysian Cash Market Prices For Palm Oil – Sep 2
- Indonesia’s Astra Agro Sells 4,000 Tons Of CPO Thursday
- BMD Crude Palm Oil (CPO) Futures Off Highs; May Fall More On Imports
- CORRECT: Indonesia PT KPB Sells 2,500 Tons Crude Palm Oil (CPO) At Export Auction Sep 2
- Malaysia August Palm Oil Imports Close To 100,000 Tons -Traders
