DCE RBD Palm Olein Futures · 2020. 12. 11. · BMD FCPO 0.98 thousand lots of daily trading volume...
Transcript of DCE RBD Palm Olein Futures · 2020. 12. 11. · BMD FCPO 0.98 thousand lots of daily trading volume...
DCE RBDPalm OleinFutures
This brochure is prepared by DCE for the sole purpose of providing general
information about the futures market in China.
Certain of the information contained in this brochure has been obtained from
published sources prepared by other parties. Whilst sources are believed to be
reliable, neither DCE nor any other person accepts responsibility for the
accuracy or completeness of such information. No representation or warranty,
express or implied is given in connection with any information given in this
brochure and no responsibility is accepted by DCE, its associates or any of
their directors, officers, employees or agents, in respect thereof. The delivery
of this brochure does not imply that the information herein is correct.
All statements of opinion and/or belief contained in this brochure and all
views expressed and all projections, forecasts or statements relating to
expectations regarding future events or the possible future performance of
DCE represent its own assessment and interpretation of information available
to it as at the date of this document. No representation is made or assurance
given that such statements, views, projections or forecasts are correct or that
the objectives of DCE will be achieved.
Address: No.129 Huizhan Road, Dalian 116023, China
Tel: (86) 411- 8480 8888 Fax: (86) 411- 8480 8588
www.dce.com.cn
Dalian Commodity Exchange. All rights reserved.
Opening-upOn May 4th 2018, DCE introduced overseas clients into its iron ore
futures unprecedentedly. There are two routes available for overseas
clients who could open accounts either through DCE futures company
members directly or through carrying-brokerage channel where they
have access to DCE futures company members via registered overseas
brokers. DCE is currently devoted to open up more products for
overseas clients.
Direct AccountOpening
Carrying-brokerage
DCE
Futures Company Members
Overseas Brokers
Overseas Clients
2019 DCE Annual Trading
billion lots1.36
FIA ranking11th
million lots of dailytrading volume
5.56
million lots of dailyopen interest
6.72
Dalian Commodity Exchange (DCE)Established in 1993, Dalian Commodity Exchange (DCE) is one of the
four futures exchanges under the supervision and administration of
the China Securities Regulatory Commission (CSRC) upon approval of
the State Council. Currently DCE has 19 listed futures and 3 options
approved by the CSRC. DCE futures products cover agricultural,
petrochemical, energy and metal sectors, serving several important
industries in China’s national economy.
The DCE futures market helps in price discovery and risk management
for market participants and facilitates the development of related
industries. In 2019, DCE was ranked 11th by the Futures Industry
Association (FIA) in terms of total trading volume.
-
200
400
600
800
1,000
1,200
1,400
1,600
1993 1995 1997 1999 2001 2003 2005 2007 2009 2010 2013 2015 2017 2019
DCE's Trading Volume by Year(million lots)
Source: DCE
Palm Oil Physical Market
*futures se lement prices refer to se lement prices of dominant contracts
DCE RBD Palm Olein futures is closely related to the palm oil physical
market. The prices of BMD Palm Oil futures (FCPO), perceived as the
pricing benchmark of the palm oil physical market, have strong
correlations with DCE prices. DCE has provided industrial participants a
reliable tool for hedging, price risk mitigation as well as profit margin
management, industrial participants could better manage trading
volumes and inventory based on DCE futures prices and spot prices of
producing regions.
High Correlations with Physical Market
RM/M
T
CNY/
MT
3,000
4,000
5,000
6,000
7,000
2017/1 2017/6 2017/11 2018/4 2018/9 2019/2 2019/7 2019/12
1,500
2,000
2,500
3,000
3,500
Palm Oil Futures Se lement Price VS Palm Oil Spot Price
DCE RBD Palm Olein Se lement Price (CNY/MT)Palm Oil Spot Price (CNY/MT) BMD FCPO Se lement Price (RM/MT)
Palm oil is the vegetable oil with the largest output and trading
volume worldwide. According to USDA projection, the global palm oil
output in 2019 would reach around 75 million metric tonnes, which
represents a 63% increase in comparison with the 2009 output level.
The main producing regions of palm oil are Indonesia and Malaysia
which together account for over 85% of global production.
The global palm oil consumption volume has been steadily escalating,
with India and China being main importers. USDA projected that the 2019
global consumption would reach 74 million metric tonnes. Especially for
India, which consumed over 12 million metric tonnes of palm oil in 2019,
experienced a 103% increase in comparison with 2010 level.
Supply and Demand
Source: DCE
Trading Volume Open Interest
Daily Trading Volume and Open Interest of DCE RBD Palm Olein Futures(2007.10-2020.12)
Source: DCE
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
400,000300,000200,000100,0000
500,000600,000700,000800,000900,0001,000,000
2007.102008.10
2014.102013.10
2012.102011.10
2010.102009.10
2015.102016.10
2017.102018.10
2019.102020.10
UNIT: lots
2019 Annual Trading
billion metrictonnes
1.35correla on with
BMD FCPO
0.98thousand lots of
daily trading volume
555thousand lots of
daily open interest
418
DCE RBD Palm Olein Futures
Since its launch in October 2007, DCE RBD Palm Olein futures contracts
have evolved into the most traded palm oil futures product worldwide.
Especially in the past Q4 2019, the daily trading volume and open
interest have reached an all-time high which were 27.6 million metric
tonnes and 9.1 million metric tonnes respectively.
Trading Statistics
DCE agricultural futures market is
well acknowledged for its maturity,
large liquidity and active
participation of industrial clients.
Major industrial enterprises already
have a long history of participating
in DCE futures market.
For RBD Palm Olein, over half of the
open interest are held by our
corporate clients who also
contribute almost 40% of the overall
trading volume.
Market Structure
Source: DCE, based on 2019 trading sta s cs
34%
66%
TradingVolume
OpenInterest 54%
46%
IndividualClients
CorporateClients
Contract Specification
*DCE may adjust the daily price limit ranges and the trading margins of each contract according to market condi ons.
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Product
Trading Unit
Price Quote Unit
Minimum Tick Size
Contract Months
Trading Hours
Last Trading Day
Last Delivery Day
Deliverable Grades
Delivery Point
Delivery Form
Ticker Symbol
Listed Exchange
10 MT/Lot
CNY/MT
2 CNY/MT
4% of last se lement price
Jan, Feb, Mar, Apr, May, Jun, Jul, Aug, Sep, Oct, Nov, Dec
The 10th trading day of the contract month
The 3rd trading day a er the last trading day
5% of the contract value
Physical delivery
P
DCE
9:00 - 11:30 a.m., 1:30 - 3:00 p.m., Beijing Time, Monday to Friday, and other trading hours announced by DCE
RBD Palm Olein
RBD Palm Olein Delivery Quality Standard of DCE (F/DCE P002-2011)
The delivery warehouses of RBD Palm Olein designated by DCE
Minimum TradingMargin*
Daily Price LimitRange*
Source: USDA
Palm Oil Output (million metric tonnes)
Source: USDA
Palm Oil Consump on (million metric tonnes)
Indonesia Malaysia Thailand Others
Indonesia India China EU Malaysia
China Palm Oil Import Volume (million metric tonnes)
Source: DCE
As the second largest importer and third largest consuming country,
China’s palm oil supply entirely depends on import from producing
countries such as Indonesia and Malaysia. For China, the 2019 annual
consumption of palm oil was estimated to be around 7.2 million metric
tonnes which marked a record high.
China: Second Largest Importer of Palm Oil
0 1 2 3 4 5 6 7 8 9 10
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
01020304050607080
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
05
1015202530354045
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Indonesia
Malaysia
Source ofimport by
region 2019
67%
33%