October launch seen for new East Malaysian palm oil contract

The upcoming new contract - the East Malaysian Palm Oil Futures (FEPO) - will provide greater price discovery to the East Malaysian market, where crude palm oil is typically sold at a discount to spot prices in peninsular Malaysia.

KUALA LUMPUR: Malaysia's bourse is targeting October to launch its East Malaysian crude palm oil contract, which is expected to benefit traders in the nation's two largest palm producing states, its derivatives exchange told Reuters.

Bursa Malaysia Derivatives Exchange (BMD) manages Malaysia's crude palm oil futures contract (FCPO), which sets the global price benchmark for the world's cheapest and most widely consumed edible oil.