Bursa Malaysia Derivatives Soybean Oil Futures: Broadening Access to China’s Soybean Oil Pricing

Bursa Malaysia Derivatives has launched the Bursa Malaysia DCE Soybean Oil Futures (FSOY) contract on 18 March 2024. This is the first non-palm-based edible oil futures contract on the Exchange.

This launch follows the official agreement signed in November 2023 between Bursa Malaysia Derivatives and the Dalian Commodity Exchange (DCE), the operator of the world’s most liquid soybean oil futures contract, for the licensing of the soybean oil futures settlement price. 

The FSOY contract is US Dollar denominated and cash settled, offering international traders the exposure to the Chinese Soybean Oil pricing through Bursa Malaysia Derivatives. Additionally, it provides exporters of soybean products to China an alternative avenue to hedge their price risk.

Moreover, the availability of both palm oil and soybean oil futures contracts on the same Exchange allows traders to effectively capture trading opportunities through spread trading strategies, given that these two commodities are common substitutes. 

Discover more about Bursa Malaysia DCE Soybean Oil Futures today: https://bit.ly/fsoy