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Second Physical Delivery Of APEX CPO Futures Contract


22 Nov 2019 11:55 AM

Singapore-based Asia Pacific Exchange (APEX) has completed the second physical delivery of the APEX Crude Palm Oil Futures Contract on 20 Nov 2019, following the successful completion of the first physical delivery in October 2019. 8,000 metric tonnes of crude palm oil were loaded from Batam Port Indonesia, destinated to Haldia Port in India. These successful physical deliveries has proved the reliability and robustness of the physical delivery mechanism of APEX CPO Futures Contract.

15th October 2019 was the last trading day of the CPF1911 Contract and a total of 800 lots (8,000 metric tonnes) of CPO Contracts were qualified for the physical delivery. The nominated port of delivery by the Seller was be Batam Port. The Buyer’s vessel arrived at the port on time and she was berthed in the morning of 19 Nov 2019, loading was commenced right afterwards. Upon completion of the loading one day later, the vessel successfully departed Batam Port after documents clearances, signifying the completion of the delivery process.

One Representative of the Seller commented: “The settings and delivery terms of APEX Crude Palm Oil Futures Contract is simple and practical. It follows closely the practices of international palm oil market in USD pricing and FOB delivery terms, providing to the market an excellent tool for hedging and arbitraging. We are glad to see the steady growth of the contracts with in its Open Interest and Trading Volume.”

The Crude Palm Oil Futures Contract is the second palm-related derivative product launched by APEX. Designed with a Contract size of 10 metric tonnes, US-dollar denomination and FOB delivery terms. Apart from Batam, Indonesia, APEX Crude Palm Oil Futures Contract has five other delivery points: Port Klang and Pasir Gudang in West Malaysia, Lahad Datu in East Malaysia, Dumai and Belawan in Indonesia.

As of 30th October 2019, APEX CPO Contract has an average daily trade volume of 23,000 contracts, and an average daily open interest of 15,000 contracts. The number of market participants continue to increase, with participants coming from palm oil plantation and commercial companies, international trading firms, proprietary/hedge funds and professional money managers.