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This is not a very good news for Malaysia:

From The Star: New futures unit in Singapoe won’t affect local market

KUALA LUMPUR: The US dollar denominated crude palm oil (CPO) futures contracts launched by Singapore last week will not affect the local CPO market due to its lack of liquidity, dealers said.

“I don’t see Singapore’s CPO market having an impact on the performance of our CPO market. We have strong liquidity compared with them,” a dealer from one of the local leading futures broking houses told Bernama.

“So far, Singapore’s CPO trading volume is less than 150 lots per day compared with our market, which has an average daily of between 15,000 and 20,000 lots,” he said, adding that industry players continue to provide strong support on the local CPO market.

Singapore had on June 6 launched palm oil trading facilities with the Chicago Board of Trade (CBOT) under the Joint Asian Derivatives Exchange.

The Singapore CPO futures contracts are based on Indonesian CPO and will be settled with physical delivery at the Belawan and Dumai ports in Sumatra, Indonesia.

The dealer also said market players will keep a close eye on the performance of Singapore’s CPO market before making the next move.

“As far as we are concerned, there’s nothing to worry about,” he added. – Bernama

Other News: CPO futures prices tumble

Crude palm oil (CPO) futures prices on Bursa Derivatives tumbled yesterday, with the benchmark three-month contract for August delivery falling RM151 to RM2,320 per tonne.

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