China Futures: DCE RBD Palm Olein Futures
What is RBD (Refined, bleached and deodorized) Palm Olein
•It is one of the product of fractionation of palm oil.
•It is mainly used in salad and cooking oils in households, industrial frying fat of instant noodles.
Demand and Supply of RBD Palm Olein
•Global demand of Palm oil is widely spread across the world, due to its domination in the global vegetable oil export trade.
•However, the world's two largest Palm oil producing countries are Indonesia and Malaysia which together account for nearly 85% of the world production.
•Global palm oil production in 2019: > 70 million tons, accounted for about 1/3 of global vegetable oil production
•Global palm oil consumption in 2019: about 71 million tons.
•China is the world’s 2nd largest importer and 3rd largest consumer of palm oil.
•China’s palm oil consumption reached 6.4 million tons in 2019, 60% of which imported from Indonesia, and 30% from Malaysia.
Factors affecting RBD Palm Olein prices
•Weather and policies influencing major producing counties
•Currency volatility in exporting countries
•Crude oil prices
Given the numerous factors affecting demand, supply and prices, hedging would facilitate management against unfavourable price risks.
Potential and Benefits of the DCE RBD Palm Olein Futures Contract
•The internationalization will greatly promote the in-depth integration of domestic and overseas palm oil markets
•It will provide overseas traders a better hedging tool by participate in both BMD and DCE market
•RBD palm olein futures and spot price correlation coefficient is up to 0.99.
As approved by CSRC to be opened up, on 22 December. DCE RBD Palm Olein futures will become:
1) the 7th product and;
2) the 1st agricultural product
among the Internationalized Products in China Futures Market.
If you wish to hedge your exposure in China through Futures contracts through the DCE RBD Palm Olein Futures, contact us.
Orient Futures Singapore is an Overseas Intermediary of DCE (Dalian Commodity Exchange) which means our clients get direct access to the China markets. Partner with Orient Futures Singapore and let us help you navigate into China’s Capital Markets.
The DCE RBD Palm Olein Furutres Contract is the latest contract China opened up for International participation. Certainly, that would be more coming as China continues to open up its markets to foreign investments.
Do not miss out on the opportunities in the liberalisation of China’s Capital Markets. Contact us today.
For Contract Specifications and trading manual of the DCE RBD Palm Olein Futures: Click here
Do not miss out on the opportunities in the liberalisation of China’s Capital Markets. Contact us today.
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Sources:
http://www.dce.com.cn/DCE/Media_Center/Exchange%20News/6251713/index.html
http://www.dce.com.cn/DCE/Products/Agriculture/RBD%20Palm%20Olein/index.html
