KUALA LUMPUR, 10 February 2026 – Bursa Malaysia reaffirmed its central role in supporting global palm oil markets as it welcomed more than 2,000 delegates from over 50 countries to the 37th Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2026), underscoring the growing importance of futures markets in navigating volatility, managing risk, and ensuring price transparency across the edible oils ecosystem.
Delivering the welcome address, Bursa Malaysia Chief Executive Officer Dato’ Fad’l Mohamed emphasised that the exchange’s flagship Crude Palm Oil Futures (FCPO) contract continues to serve as the global benchmark for palm oil pricing, enabling producers, traders, and institutional participants to manage price exposure effectively in an increasingly complex global environment.
The annual conference, held at Shangri-La Hotel Kuala Lumpur, coincides with Bursa Malaysia’s 50th anniversary, marking five decades of its evolution as a key financial infrastructure supporting Malaysia’s commodity markets and broader capital market ecosystem.
FCPO Reinforces Position as Global Benchmark Amid Rising Market Participation
Dato’ Fad’l noted that FCPO remains a critical instrument for price discovery and risk management, with consistent market participation helping ensure reliable pricing signals and efficient hedging mechanisms.
In 2025, FCPO trading volume rose 4% year-on-year to 19.62 million contracts, reflecting sustained engagement from domestic and international market participants.
Across Bursa Malaysia’s derivatives segment, total trading volume reached a record 23.30 million contracts for two consecutive years, including an all-time high daily volume of 197,458 contracts recorded in October 2025.
These milestones highlight the increasing reliance on exchange-traded derivatives to manage price risks in volatile commodity markets, particularly as global edible oil prices respond to geopolitical tensions, shifting demand patterns, and climate-driven supply disruptions.
“Effective price discovery and hedging depend on consistent participation and sufficient liquidity. Without that depth, price signals become less reliable, and the cost of managing risk increases for everyone,” Dato’ Fad’l said.
Palm Oil Market Faces Rising Complexity from Global and Structural Forces
The palm oil industry is undergoing structural transformation driven by multiple factors, including geopolitical uncertainty, volatile weather conditions, evolving regulatory requirements, and sustainability mandates.
Malaysia, as one of the world’s largest palm oil producers, continues to play a critical role in shaping global supply, demand, and pricing expectations.
Palm oil pricing is increasingly influenced by broader vegetable oil markets, including soybean oil and renewable fuel feedstocks, as substitution effects and cross-market price correlations become more pronounced.
Energy transition policies and sustainability requirements are also introducing new risk variables, influencing supply chains and price volatility across edible oil markets.
These developments reinforce the need for sophisticated risk management tools that enable industry participants to hedge against increasingly complex price exposures.
Bursa Malaysia Expands Risk Management Toolkit with New Derivatives Contracts
Recognising the evolving needs of market participants, Bursa Malaysia has introduced additional derivatives contracts to broaden risk management capabilities beyond palm oil.
These include the Bursa Malaysia DCE Soybean Oil Futures (FSOY), which provides exposure to China’s soybean oil market—one of the world’s largest edible oil markets—and USD Used Cooking Oil FOB Straits Futures (FUCO), which reflects pricing dynamics linked to renewable fuels and bioenergy markets.
These instruments complement FCPO by enabling participants to hedge across related edible oil markets and better manage cross-commodity price risk.
Dato’ Fad’l emphasised that while new tools enhance market resilience, their effectiveness ultimately depends on industry confidence and adoption.
“Innovation only helps if companies trust and use the tools. Future-ready markets require instruments that truly match new risks and the confidence for businesses to use them,” he said.
Exchange Strengthens Role as Market Infrastructure Provider Amid Industry Transformation
Bursa Malaysia’s leadership in palm oil derivatives highlights its broader role as a critical market infrastructure provider supporting Malaysia’s commodity sector and global palm oil trade.
POC2026 serves as a platform for industry leaders, policymakers, producers, traders, and investors to exchange insights, assess market trends, and strengthen collaboration across the palm oil value chain.
The conference also reinforces Malaysia’s position as a global hub for palm oil pricing, trading, and risk management.
Dato’ Fad’l noted that strong markets depend on collective participation and continuous dialogue among stakeholders.
“Continuous dialogue and shared understanding across the value chain are essential, and this conference helps facilitate that,” he said.
Strategic Outlook: Palm Oil Futures Market Remains Critical Amid Global Volatility
As global commodity markets face increasing volatility driven by climate change, geopolitical tensions, and energy transition policies, derivatives markets are becoming increasingly essential for managing risk and ensuring pricing efficiency.
FCPO’s growing liquidity and adoption reinforce its status as the global benchmark for palm oil pricing, strengthening Malaysia’s leadership in the global palm oil ecosystem.
With expanded product offerings and growing international participation, Bursa Malaysia is well-positioned to support the industry’s evolving needs and enhance the resilience of global edible oil markets.
As the exchange marks its 50th anniversary, its continued focus on innovation, market depth, and stakeholder engagement ensures it remains a cornerstone of Malaysia’s commodity and capital markets.
