South East Asia’s new tiger economy has witnessed a spike in on exchange Palm oil transactions. Total contracts traded on Bursa Malaysia Derivatives (BMD) reached a historical daily volume high of 77,703 contracts on Wednesday, 16 May 2012, surpassing the previous record of 74,014 contracts on 24 February 2011.
Palm oil is currently trading at 3,123 ringgit ($998) per tonne.
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In addition, daily volume for crude palm oil futures (FCPO) contracts also charted a historical high of 63,019 contracts on Wednesday, surpassing the previous record of 48,741 contracts on 17 November 2011.
This is attributed to increased hedging activities resulting from the volatility and uncertainty seen in global financial and palm oil markets.
Bursa Malaysia has a partnership with CME, offering palm oil in US dollars.
Forexmagnates team will be writing a detailed report on FX in Malaysia, available in the next Q2 quarterly report.