Palm Oil Traders Must Wait
December 8th, 2006 by Ian
Crude palm oil futures were supposed to be in the market being traded by the end of the year on the Joint Asian Derivatives Exchange (JADE), but traders will have to wait.
Trading in futures contracts of Indonesian palm oil will now debut in the “early first quarter of 2007,” a CBOT spokeswoman told Reuters.
She gave no reason for the delayed launch.
JADE launched its first contract, rubber, in September in an attempt to capture the vast potential market among Asian hedgers seeking protection against their trades in the cash markets.
The launch of the crude palm oil futures contract was widely awaited as it will be offered on the same electronic platform as the CBOT’s soybean oil futures contract and the Winnipeg Commodity Exchange canola contract, providing market participants additional spreading opportunities.
The JADE crude palm oil contract was expected to compete head-to-head with the Malaysian palm oil futures contract, the world’s benchmark for pricing palm oil.
