InfoSAWIT, KUALA LUMPUR – Malaysia Derivatives Exchange announced the plan to get further trade by launching soyoil exchange in the first quarter next year. It was decided to create protection solution which would be more comprehensive for vegetable oil stakeholders.
Director of Derivatives Market Malaysia Derivatives Exchange Mohd Saleem said that the plan is being formulated with contract specification and would be accomplished before the first launching in the early days of 2024.
“There would be more trading, such as, crude palm oil (CPO) and soyoil. This would be synergizing protection values in one roof (management),” he said, as InfoSAWIT quoted from The Edge Market.
The plan is also about to create efficiency and sustainability in vegetable oil trade because CPO, soyoil, sunflower, and canola have connection one to another.
By having soyoil exchange contract, Malaysia Derivatives exchange hoped to deliver many choices for stakeholders that want to have protection value on the risks that they are facing about price fluctuation in the markets globally.
Prior Chicago Mercantile Exchange (CME Group) and Chicago Board of Trade (CBOT) led soyoil exchange contract. But by having the ambitions plan, Malaysia Derivatives Exchange hoped to get soyoil producer and traders’ attention in the world. There would be challenges to face as same as having the big chances.
Chief Executive of Sunvin Group, consultant and broker company in Mumbai, Sandeep Bajoria said that soyoil contract at CBOT and Dalian Commodity Exchange is in liquid. That is why Malaysia Derivatives Exchange needs to get smart actions to get trade volume significantly.
“Soyoil contract at CBOT and Dalian Commodity Exchange is very liquid. It is not easy for Malaysia Derivatives Exchange to get big volume,” he said.
This would be significant after India stops palm oil and soyoil exchange trade in December 2021. In this context, India wants to get alternative value protection and Malaysia Derivatives Exchange could be one interesting option. (T2)
