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More than 2,000 industry drivers from over 50 countries will converge here for the 27th Bursa Malaysia Palm and Lauric Oils Conference & Exhibition, Price Outlook (POC 2016) this 7–9 March. Themed: Managing Market Uncertainties, Our Global Solution, POC 2016 will gather experts for robust discussions on risk management techniques including hedging via Bursa Malaysia’s globally traded Palm Oil Futures Contract (FCPO), as well as present their outlook for the market.
YAB Dato' Seri Dr. Ahmad Zahid Hamidi, Deputy Prime Minister of Malaysia, will officiate the POC 2016 global palm oil conference with a Special Address. The expected attendees represent the entire value chain including plantation owners, manufacturers, fund managers, traders, derivatives participants, logistics and infrastructure providers.
Datuk Seri Tajuddin Atan, Bursa Malaysia Chief Executive Officer and Chairman of Bursa Malaysia Derivatives stressed on the importance for the palm oil industry players to adopt a responsible hedging policy to manage price risks.
“Hedging is a key component in managing risks and ‘if you are not hedging then you are speculating’. The industry will be impacted in one way or another by the volatility of the market. As such, companies and businesses cannot ignore the need to employ sophisticated risk management strategies to manage their bottom line. Trading and hedging is an important strategy to protect the long term sustainability of any business.”
“Bursa Malaysia’s FCPO is a globally trusted product that is accessible and tradeable on a global trading platform via GLOBEX through our strategic partnership with CME. Our FCPO has been recognised as a hedging tool in the edible oils industry with increased global and domestic participation. Indeed, within Bursa Malaysia’s suite of derivatives products, our FCPO and OCPO contracts provide a global solution to manage market uncertainties,” Datuk Seri emphasised.
Bursa Malaysia has earned the global recognition as the leading benchmark for edible oils and the world’s price discovery marketplace for palm oil. In 2015, the FCPO achieved a record volume of 10.98 million contracts, surpassing the 2014 historical level of 10.16 million contracts to record the highest number of contracts traded in a year since 1980. The volumes traded by domestic institutions for FCPO has grown from 15% in 2014 to 21% in 2015. The average daily open interest is around 200,000 contracts.
Eminent speakers at POC 2016 will include some of the world’s influential industry opinion leaders including Dorab Mistry Director of Godrej International Limited, Dr James Fry, Chairman of LMC International Ltd and Ms Emily French, Managing Director, ConsiliAgra, and other prominent industry leaders who will be featured on various plenaries and roundtable sessions. Two Special Papers will be presented at the conference; “Climate Change and Its Impact of Agri Business” by Mr Sunny Verghese, Co-Founder and Group CEO of Olam International Ltd, and “Development of Derivatives Market in China” will be presented by Dr Li Zhengqiang, Chairman of Dalian Commodity Exchange.
POC is the largest and most respected global palm oil price outlook event, facilitating the exchange of ideas and enabling participants to share their assessments on the developments that will impact the price outlook on the palm and lauric oils market. The platform continues to grow in relevance, reinforcing Malaysia’s position as the global palm oil marketplace and a market that owns the global palm oil price benchmark.
