Bursa Malaysia Derivatives sets record with 22.8mil contracts traded
Bursa Malaysia Derivatives achieved a record 22.75 million contracts in 2024, a 19% rise from 2022, driven by strong demand for Crude Palm Oil Futures (FCPO). FCPO trading volume surged 17% to 18.95 million contracts. CPO production rose 4%, with prices up 9.7% to RM4,179.50 per tonne. Challenges include competition and fluctuating demand.
KUALA LUMPUR: Bursa Malaysia Derivatives recorded an all-time high of 22.75 million contracts traded across all products, a 19 per cent jump from the previous record of 19.11 million contracts in 2022.
Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar said the strong performance was driven by sustained demand for Crude Palm Oil Futures (FCPO).
“As CPO prices fluctuate due to multiple factors, Bursa Malaysia’s FCPO contract remains a critical tool for managing market volatility.
“For over 40 years, it has served as the globally referenced benchmark for CPO pricing and a preferred risk management tool among edible oil traders worldwide,” he said at the 36th Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2025) here today.
According to Abdul Wahid, last year, Bursa Malaysia’s FCPO trading volume increased by 17 per cent from 16.21 million in 2023 to reach 18.95 million contracts in 2024.
He noted that in Oct 2024, a new milestone was achieved when the monthly average daily contracts crossed 100,000 for the first time, reaching 106,385 contracts.
“Meanwhile, data from the Malaysian Palm Oil Board (MPOB) for the full-year 2024 shows that CPO production increased by over four per cent to 19.3 million tonnes.
“The average CPO price increased by 9.7 per cent to RM4,179.50 per tonne and exports of palm oil and other palm-based products grew by 8.9 per cent compared to year 2023, reaching almost 27 million tonnes in 2024,” he said.
Looking ahead, Abdul Wahid said Malaysia’s palm oil industry is poised for further growth, supported by improving labour conditions and robust export demand.
He added that the agriculture sector, in particular, is projected to expand by 1.9 per cent driven by biodiesel mandates in various countries, rising global demand for edible oils, improved palm oil price forecasts, and better labour conditions.
However, he said the road ahead is not without challenges, as increased competition from alternative vegetable oils, subdued demand from major importers such as China and India, and unpredictable weather patterns all continue to affect trade dynamics.
Therefore, he advised market participants to remain vigilant about these factors.
“In such uncertain times, exchange-traded derivatives have proven effective in helping market participants navigate volatility and manage price risk.
“Bursa Malaysia Derivatives’ products continue to remain essential for hedging, risk management, and price discovery,” he said.
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Source : The Business Times
