The Palm and Lauric Oils Price Outlook Conference & Exhibition 2020 (POC2020) is an annual flagship event held in Kuala Lumpur, Malaysia by Bursa Malaysia Derivatives Berhad (BMD), operator of the global price benchmark for the international oils and fats industry, the Crude Palm Oil Futures (FCPO) and Option on the FCPO contract (OCPO).

Over the past 30 years, the POC has solidified its status as one of the most anticipated events in the oil and fats industry, attracting more than 2,000 industry players from over 50 countries each year to gather at this conference. It provides unique opportunities for participants to gain first-hand knowledge on trading and hedging strategies, as well as insights from top industry experts on supply, demand and price outlook of the Palm and Lauric Oils market. It is also an ideal platform for building business network, promoting brand awareness and exploring innovative business solutions.
 

In conjunction with POC2020, BMD is also collaborating with FIA to host the inaugural futures seminar in Kuala Lumpur. This collaborative effort is to draw an impressive group of experts, as they discuss the vibrant exchange-traded derivatives in this growing hub of the Southeast Asian commodity markets. For more information, please visit https://fia.org/events/fia-forum-kuala-lumpur-2020 

2019 Updates

CPO prices in 2019 had a weak start but have since caught up to 2018 price levels in Q3. On the supply side, the total production of Malaysia palm products has increased slightly for the first half of 2019 compared to the same period in 2018. On the demand side, India’s move to reduce tariff on Crude Palm Oil and Refined Palm Oil has pushed exports to increase. However, other global factors such as the on-going trade war tensions has kept the palm oil prices to trade at a limited range.

In the period of 9 months, from January to September, the trading of Crude Palm Oil Futures (FCPO) contract has experienced a slight decrease of 4.51% to 7.5 million contracts from 7.8 million in Year 2018. The open interest for 2019 dipped 29.97% with September end-of-the-month open interest recorded at 190,890 contracts (4.8 million MT), as compared to 272,592 contracts (6.8 million MT) in September 2018.

Looking at our BMD physical delivery data, it recorded a slight decline of 0.06% from 515,900 MT in 2018 to 485,425 MT in 2019.

Responding to the uncertainties in the market, BMD will be launching the world’s first US dollar-denominated options contract on RBD Palm Olein (OPOL) in the 4th quarter of 2019, adding on to the array of possible risk management tools available for palm oil players.



POC2020

The POC2020 will be held in Kuala Lumpur from 2 to 4 March 2020. 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 Oils market for 2020.