Trading started on the palm oil exchange in Indonesia
The first trading began on Friday on Indonesia’s palm oil exchange as part of efforts by the world’s largest oil producer to establish a reliable benchmark price.
Four lots of 25 tons each of physical crude palm oil (CPO) traded at Rp 11,305 ($0.7130) per kg on Friday when the Indonesia Commodities and Derivatives Exchange (ICDX) opened, an ICDX official said. The cargo must be delivered to the port of Dumai in Sumatra within 15 days.
Friday was the first day that ICDX offered spot prices, and 18 companies were expected to participate, said Nursalam, the exchange’s CEO.
CPO futures contracts will be offered later, Nursalam said.
The exchange holds three trading sessions daily, said a second ICDX representative.
“The main thing is that the exchange will create transparent and organized trading,” said Didid Nurdiatmoko, chairman of Indonesia’s commodities regulator BAPPEBTI.
Indonesia aims to have a benchmark price by the first quarter of next year that could compete with prices in Kuala Lumpur and Rotterdam.
Trading through the exchange is currently voluntary. Most Indonesian palm oil exporters tend to trade directly with buyers.
(1 dollar = Rp 15,855,0000)
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