Bursa Malaysia Derivatives’ total trading volume for FCPO contract breaks all-time high

Bursa Malaysia Derivatives (BMD) continued its string of records when the total trading volume for Crude Palm Oil Futures (FCPO) contract recorded a new historical all-time high volume of 12.0 million lots, surpassing the previous record of 11.91 million lots achieved in 2017. 

On a year-to-date basis, there has been a 41 percent increase from 8.49 million lots registered between January to October 2019. As of today, 300 million MT Crude Palm Oil was traded via the exchange, which is approximately 20 times Malaysia production as of September 2020.

The increase in volume was primarily due to the greater use of FCPO as a hedging tool against the price volatility caused by the Covid-19 pandemic. 

“Price volatility is no stranger to the market, yet this pandemic outbreak has shaken the commodities sector. Nonetheless, BMD remains committed to strengthening the palm complex suite to cater to the demand of market participants and provide a reliable hedging and arbitrage instrument against price volatility in the palm oil industry,” said Abdul Wahid Omar, Chairman of Bursa Malaysia Berhad at the Virtual Palm & Lauric Oils Price Outlook Conference & Exhibition 2020 (vPOC 2020).

The 2-day event registered close to 2,400 attendees at the opening session yesterday. The event has facilitated the exchange of ideas on the developments that impact the price outlook on the palm and lauric oils markets, over the years.

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