MALAYSIA: Bursa Malaysia Derivatives Completes First Physical Delivery of FEPO

Wednesday June 15 2022

On 14^th June 2022, Bursa Malaysia Derivatives Berhad announced that it had successfully completed the first physical delivery of its East Malaysia Crude Palm Oil Futures Contract (FEPO) in Sarawak on, 10^th June 2022.

The delivery saw a total of 10 contracts, representing 250 metrics tonnes of Crude Palm Oil (“CPO”) transacted at one of the approved Port Tank Installations (“PTIs”) in Bintulu, Sarawak. The PTI is operated by Biport Bulkers Sdn Bhd, a wholly owned subsidiary of Bintulu Port Holdings. Bintulu Port Holdings is a public listed company that manages and operates the vegetable oil bulking terminal that caters for the rapidly growing palm oil industry in Sarawak, Malaysia.

The Exchange is pleased that physical deliveries under the FEPO contract have successfully taken place in all three (3) PTIs in East Malaysia, namely Sandakan, Lahad Datu, and Bintulu.

The CPO Futures markets of Bursa Malaysia Derivatives has seen increased participation due to the recent price volatility in palm oil. On 6 May 2022, the FEPO contract reached a new daily trading volume high of 186 contracts, equivalent to 4,650 metric tonnes of CPO.

Bursa Malaysia Derivatives is the first Exchange in the world to offer physically delivered commodity derivatives contracts with sustainable requirement mandated for delivery. All physical deliveries made under its Crude Palm Oil Futures (FCPO) and FEPO contracts must be sourced from Palm Oil Mills that meet the Oil Palm Management Certification (OPMC) under the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme’s requirements. These commitments are in line with the Exchange’s efforts to foster sustainable development through its product offerings and across the entire value chain.

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