“This contract is a result of market feedback and research involving global participants in the physical crude palm oil market,” says Benjamin Foo, chief executive of Jade. “Its design will meet the growing international demand for risk management tools for crude palm oil from producers, processors and the emerging biofuel industry.”
The exchange says this is the first time a crude palm oil futures contract will be listed for trading during the US trading day. It would allow commercial hedgers to trade Jade crude palm oil futures and Chicago Board of Trade (CBOT) soybean oil futures concurrently to manage their edible oils price risk.
Jade is a joint venture between CBOT and the SGX. The exchange also trades a TSR 20 rubber futures contract.