Dalian to cut fees to woo heavier palm oil trades

CHINA'S Dalian Commodity Exchange (DCE), which currently settles an average of 300,000 refined, bleached and deodorised (RBD) palm oil contracts a day, plans to lower transaction fees by 25 per cent to woo more trades.

"We're looking at reducing settlement fees from RMB4 to RMB3 per contract to make it more attractive for traders. That's a 25 per cent discount," said DCE senior manager Wang Yun Tao.

"We'll be conducting hedging seminars to some 1,000 enterprises that buy RBD palm oil for their factory use.

"Through this we hope to attract more traders and more volume at our exchange," he told Business Times when met at the Palm Oil Outlook Conference 2010 in Kuala Lumpur.

Daily settlement of RBD palm oil contracts at DCE improved tremendously since its launch in October 2007.

"When we first started, we were seeing  some 15,000 palm oil contracts a day. Nowadays, it averages at around 300,000. We hope to see heavier daily trades at 400,000 contracts by next year" he added.

Earlier, CME Group and Bursa Malaysia announced the launch date of the jointly-developed US dollar-denominated cash-settled CPO futures contract to be traded in Chicago and Kuala Lumpur simultaneously. Asked if DCE may want to seek a similar tie-up, Wang said, "We're always open for discussion, we don't rule out that possibility. For now, there is no such specific plans. "

He said any development of new products for the exchange takes time as it involves a host of stakeholders' interests and regulatory approvals.

5 Responses to Dalian to cut fees to woo heavier palm oil trades

  1. I am curious, are you being paid by MPOC? While you work full time for NSTP? Your blog is listed on MPOC's page and you only blog about palm oil. It seems highly dubious.
    L.A. Aziz

  2. palm oil outsider 15 March 2010 at 11:24

    I don't think she is being paid by MPOC,... your curiocity is a little on the over-board side.
    By just looking at the title of her blog, you already know that this blog is dedicated to palm oil, and mind you ,palm oil is one of the main pillar of our national life lines where millions of our citizens are dependent on its economical attributes and goodness.
    You should salute her dedication and patriotism
    and should not even have the slightest thought of negativesm.
    These guys are good people for the goodness of a wholesom industry....

  3. Judging by the content, it is highly unlikely that Blog owner is paid by MPOC. It is ludicrous that you make your assumption by virtue of the blog weblink on MPOC website, imho.

  4. Mr LA Aziz, I think, if you have a palm related blog, you can link it to MPOC too. It is a blog ping function. You look at the bottom page and there's a 'Add blog' link. Fill in the details and your blog should appear and God forbid that people accuse you for getting paid by MPOC!

  5. Hello Mr L.A. Aziz,
    My Grandmother said to me, when you point a finger at someone, take a look at your hand because there are three fingers pointing back at you!! Are you receiving one of the those who have received money from the EU-based green groups?

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