CRUDE PALM OIL FUTURES (FCPO)

WHAT IS FCPO?
Bursa Malaysia’s Crude Palm Oil Futures contract, or better known as FCPO, has been the global price benchmark for the Crude Palm Oil market since October 1980. The FCPO is a deliverable contract which is traded electronically on Bursa Malaysia’s trading platform. With an impressive track record of 27 years, Bursa Malaysia’s FCPO price has become the reference point for market players in the oils and fats industry.

BENEFITS OF FCPO
• To manage price risk – plantation companies, reneries, exporters and millers can
use the FCPO to manage risk and hedge against the risk of unfavourable movements
in the price of FCPO in the physical market.
• To speculate – traders can use the FCPO to gain leveraged exposure to movements in
CPO prices.
• To gain immediate exposure into the commodity market – via FCPO, global fund
managers and proprietary traders are able to be part of the active commodity
market instantaneously.

- courtesy of BURSA MALAYSIA