China Set to Allow Foreign Access to DCE Palm Oil Futures

Dalian Commodity Exchange palm oil futures will become China’s seventh commodity futures product available to foreign investors.

The CSRC (China Securities Regulatory Commission) has announced that trading of onshore palm oil futures contracts on the DCE (Dalian Commodity Exchange) will be open to foreign investors starting 22 December.

Since listing the contract in 2007, the DCE has developed into the world’s largest trading platform for palm oil futures.

China relies heavily on palm oil imports and is currently the world’s second-largest importer and the third-largest consumer of the commodity.

Last month, the DCE solicited opinions on amended rules to introduce overseas traders into its market for RBD (refined, bleached, deodorised) palm olein futures.

With the CSRC’s approval, palm oil will become China’s seventh commodity futures product available to foreign investors, as the country seeks to increase its pricing power in the global commodity markets.

The six commodities contracts in China that are currently open to foreign investors are crude oil, iron ore, TSR 20 rubber, low-sulphur fuel oil, purified terephthalic acid (PTA), and a new bonded copper contract.

Last year, the DCE also announced plans to open up its futures contracts in soybean, soybean meal, and soybean oil to foreign investors, subject to regulatory approval.