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Singapore exchange makes first physical palm oil delivery

Singapore exchange makes first physical palm oil delivery

SINGAPORE : The Asia Pacific Exchange (APEX), which started trading palm oil futures in Singapore this year, has completed the cargo loading for the first physical delivery under its contract, a company spokesman said.

The inaugural delivery of 4,000 tonnes of palm olein took place last week in Indonesia’s Dumai port, from where the product will be shipped to Pakistan, he said.

APEX, Singapore’s third derivatives exchange, started operations in late May.

APEX hopes its US dollar-denominated palm olein futures give traders another option beyond benchmark ringgit-denominated contracts and is touting the exchange as a place for Southeast-Asian sellers and other international players to gain access to Chinese buyers.

Under the contracts, palm olein is for physical delivery, on a free-on-board basis at Pasir Gudang and Port Klang in Malaysia, while in Indonesia it is for Belawan port, besides Dumai.