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BMD Crude Palm Kernel Oil Futures (FPKO) Specifications

EXCHANGE Bursa Malaysia Derivatives (BMD)
UNDERLYING INSTRUMENT Crude Palm Kernel Oil
PRODUCT SYMBOL FPKO
CONTRACT SIZE 25 metric tons
PRICING UNIT Ringgit Malaysia
MINIMUM PRICE FLUCTUATION RM1.00 per metric ton
CONTRACT MONTHS Spot month, the next 5 succeeding months, and thereafter, alternate months up to 12 months forward
TRADING HOURS 1st session: 10:30 a.m. to 12:30 p.m.,
2nd session: 3:00 p.m. to 6:05 p.m.
DAILY PRICE LIMIT RM100 per metric ton above or below the preceding day’s Settlement Prices for all months, except spot month. Limits are expanded when the Settlement Prices of all three quoted months immediately following the current month, in any day, are at limits as follows:

Day Limit
First Day RM100
Second Day RM150
Third Day RM200

Daily price limits will remain at RM200, when the preceding day’s settlement prices of all the three quoted months immediately following the spot month settle at limits of RM200. Otherwise, it shall revert to the basic limit amount of RM100.

SETTLEMENT TYPE Physical Delivery
LAST TRADE DATE Contract expires at noon on the 15th day of the spot month or if the 15th day is a non-market day, the preceding Business Day.
TENDER PERIOD First Business Day to the 20th day of the delivery month. If the 20th is a non-market day, the preceding Business Day.
CONTRACT GRADE AND DELIVERY POINTS Each tender shall consists of 25 metric tons of Crude Palm Kernel Oil in bulk unbleached of good merchantable quality and stored at a Port Tank Installations located at the option of the seller at Port Kelang, Penang/Butterworth and Pasir Gudang (Johor). Free Fatty Acids (FFA) content (as Lauric Acid of CPKO) delivered into Port Tank Installations shall not exceed 3.5% and out of Port Tank Installations shall not exceed 4%.

Moisture and Impurities shall not exceed 0.5%. Iodine Value at range 16.5 < 18.75 Color range 4 Red – 8 Red & 60 Yellow Max.
DELIVERY UNIT 25 metric tons, plus or minus not more than 2%.Settlement of weight differences shall be based on the simple average of the daily Settlement Prices of the delivery month from:

a. the 1st Business Day of the delivery month to the day of tender, if the tender is made before the last trading day of the delivery month; or

b. the 1st Business Day of the delivery month to the Business Day immediately preceding the last day of trading, if the tender is made on the last trading day or thereafter.

SPECULATIVE POSITION LIMIT Maximum number of net long or net short positions to be held:

250 contracts net long or net short on the spot month. 1,000 contracts on any single month except for the spot month. 1,500 contracts on all contract months combined.

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