Palm Olein Futures
APEX is targeting to launch its first product, a refined palm olein futures contract. The key advantages of palm olein futures are: FOB physical delivery with delivery ports that are located Malaysia and Indonesia along the Straits of Malacca. 85% of global palm oil production and 91% of international palm trade takes place in Malaysia and Indonesia.
By using USD as the pricing currency and accepting RMB and other currencies as acceptable margin collateral, APEX’s palm olein futures contract is in line with international trade practices and avoids the risk of currency price fluctuations.
With the impending launch of APEX’s palm olein futures contract, it aims to provide an alternative venue to the global palm oil trading industry and serves as a new avenue for hedging and arbitraging purposes.
APEX RBD Palm Olein Futures Contract Specifications (V2019.04.03)
|Contract Size||10MT / Contract|
|Minimum Price Fluctuation||US$0.25 / MT|
Singapore time trading sessions: Singapore Business Days
08:55am – 08:59am (Pre-opening Session)
|Daily Price Limit||+/-10% of Last Settlement Price. There shall be no Daily Price Limit in force for a Contract on its Last Trading Day.|
|Contract Series||Monthly Contracts (12 consecutive months Contracts)|
|Last Trading Day||The 15th Calendar Day of Front Contract Month if it is a Business Day, otherwise the preceding Business Day|
|Delivery Method||Physical delivery FOB at Pasir Gudang (Malaysia), Port Klang (Malaysia), Lahad Datu (Malaysia), Belawan (Indonesia), Dumai (Indonesia), or any other APEX Approved Port|
|Minimum Deliverable Size||50 Contracts (i.e. a total of 500 MT)|
|Initial Margin||Based on SPAN (Click to see Margin Schedule)|
|Last Delivery Day||The last Calendar Day of Delivery Month|
|Maximum Order Size||500 Contracts per order|
RSPO Certified Growers/Processors
1) About RSPO
Roundtable on Sustainable Palm Oil (RSPO) is a not-for-profit that unites stakeholders from the 7 sectors of the palm oil industry: oil palm producers, processors or traders, consumer goods manufacturers, retailers, banks/investors, and environmental and social non-governmental organisations (NGOs), to develop and implement global standards for sustainable palm oil.
The RSPO has developed a set of environmental and social criteria which companies must comply with in order to produce Certified Sustainable Palm Oil (CSPO). When they are properly applied, these criteria can help to minimize the negative impact of palm oil cultivation on the environment and communities in palm oil-producing regions.
The RSPO has more than 4,000 members worldwide who represent all links along the palm oil supply chain. They have committed to produce, source and/or use sustainable palm oil certified by the RSPO.
2) Affiliate member of RSPO
As an effort to promote the sustainability of the production and use of palm oil, APEX has become an affiliate member of RSPO on 17 July 2020.
3) Automatic approval of RSPO Certified Growers/Processors as APEX Approved Suppliers
As an effort of APEX to promote the sustainability of the production and use of palm oil, and in recognition to the credibility of the sustainability certification process through the RSPO Principles and Criteria Certification, the Clearing House has decided that all RSPO Certified Growers/Processors will be automatically approved as Approved Suppliers and allowed to supply Crude Palm oil for APEX Crude Palm Oil Futures Contract and RBD Palm Olein for APEX RBD Palm Olein Futures Contract respectively.
Please refer to RSPO website for the latest list of Certified Growers and Processors.