The Joint Asian Derivatives Exchange (Jade), a Singapore-based electronic commodity derivatives exchange, will launch a crude palm oil (CPO) futures contract on June 6.The contract is denominated in US dollars and will be settled with physical delivery at the ports of Belawan and Dumai in Indonesia. The contract will trade from 10.30am to 6pm Singapore time, followed by a one-hour session from 9:30am to 10:30am Chicago time. It will be traded on the global e-CBOT platform and cleared by the Singapore Exchange derivatives clearing house.
“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.
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