Chief Executive Officer of Bursa Malaysia, Yusli Mohamed Yusoff said that the DOBI will ensure the futures contracts traded on Bursa Derivatives reflect the primary quality of Crude Palm Oil (CPO) traded in both domestic and export markets.
“We have consulted the palm oil industry participants and this revision has been developed with input from Malaysian Palm Oil Association (MPOA), the Palm Oil Refiners Association of Malaysia (PORAM) and Malaysia Palm Oil Board (MPOB) as well as other market participants.
In this regard, the delivery of CPO into the Port Tank Installations shall conform to the following specification:
The Deterioration of Bleachability Index (DOBI) value of palm oil delivered into Port Tank Installations shall be at a minimum of 2.5 and of palm oil delivered from Port Tank Installations shall be at a minimum of 2.31.
“The inclusion of the DOBI value of palm oil into the FCPO contract specification was recently approved by the Securities Commission and the new changes will be implemented on 1 July 2005, beginning with the July 2005 and subsequent contract months,” Yusli said.
In 2004, FCPO has traded a total of 1,378,334 contracts, representing 34,458,350 metric tons of crude palm oil traded. For information on other products listed on Bursa Malaysia Derivatives, log on to www.bursamalaysia.com.
