The world-renowned Palm and Lauric Oils Price Outlook Conference & Exhibition 2019 (POC2019) is held annually in Kuala Lumpur, Malaysia. The must-attend event is organized by Bursa Malaysia Derivatives Berhad (BMD) and attended by international players from the oils and fats industry from over 50 countries. BMD operates the world benchmark for Crude Palm Oil Futures (FCPO) and Option on the FCPO contract (OCPO). Now into its third decade, it continues to provide an excellent base for networking among its delegates to discuss or exchange ideas, solutions and trends on the future edible oil industry.



2018 Updates

The trade war tensions coupled with India’s high palm oil import tariffs have affected the market’s performance throughout the year. Higher output, weak demand and rising stockpile to historic highs has led to dismal crude palm oil price performance. This have a substantial impact on Industry players’ operational costs and profit margins.

Bursa Malaysia Derivatives Berhad (BMD) has revised the contract specifications for crude palm oil futures contract and its related contracts. The amendments to the contracts are (a) increment in position limits (b) revision of trading hours (c) extension of trading tenure (d) traceability of delivery up to the palm oil mill.

The trading of crude palm oil futures (FCPO) contract has fallen about 18.6% to 9.9 million contracts from 11 million in Year 2017. However, year-end open interest rose about 1.4% to 248,595 contracts (6.2 million MT) in 2018 from 245,123 (6.1 million MT) last year.

On the other hand, a tremendous growth of 65.3% was observed in the options market for Year 2018. A total of 64,366 crude palm oil options (OCPO) contract were traded compared to 38,916 in Year 2017.

BMD has revised the physical delivery procedure for the USD RBD palm olein futures (FPOL) contract from ex-tank delivery to a free on board (FOB) delivery. Since its launch on 24 May 2018, it had gained traction and recorded a total volume of 435,811 contracts. This translates to a daily average of 3,252 contracts.



POC2019

The POC2019 will be held in Kuala Lumpur from 4 to 6 March 2019. Delegates representing various sectors of the edible oils industry from all around the globe will once again congregate in the capital. The conference will feature prominent local and international industry experts who will be sharing their analyses and assessment on the development and challenges that will impact the price outlook on the palm and lauric oil market for 2019.