Bursa Malaysia plans to launch futures on used cooking oil in December
The director of Bursa Malaysia Derivatives Exchange said that the new contract for used cooking oil would be launched as soon as December.
It is in its final stages. The regulatory approvals are still pending," said Mohd Saleem Bakas, director of the oilseeds conference in Dalian.
He said that the contract could launch in December 2025 or the first quarter, depending on approvals.
BMD’s UCO futures will be added to a contract for soybean oil that was launched by the company in March.
Mohd Saleem stated that the bourse is trying to position themselves as an edible oils hub. The bourse is known for having the most liquid crude Palm Oil futures on the market.
Cooking oil that has been used is an important ingredient in the production of renewable biofuels.
Malaysia, which is the second largest producer of palm oils in the world, exported almost 300,000 metric tonnes of biodiesel, while its domestic consumption was around 1.1 millions tons.
Mohd Saleem stated that the market has been driven by sustainability and biofuel mandates.
The UCO contract is unique in that it targets the South East Asian region, making it more aligned with the industry's needs and trends. (Reporting and editing by Louise Heavens, Mei Mei Chu)
(source: Reuters)
