SHANGHAI/KUALA LUMPUR: China, the world's No. 2 palm oil importer, opened its palm oil futures contract to overseas investors on Tuesday, but trading risks and Malaysia's more influential status as a producer mean it will struggle to become a global benchmark.
Five Malaysia and Singapore-based traders told Reuters they had no immediate plans to trade the Dalian Commodity Exchange's yuan-denominated palm oil due to volatility and currency exposure risks, and will stick to the benchmark Bursa Malaysia Derivatives (BMD) contract.
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