DALIAN, CHINA: Bursa Malaysia Derivatives Exchange (BMD) is preparing to launch a futures contract for used cooking oil (UCO) as soon as December, according to the director of the Malaysian bourse.
Director Mohd Saleem Kader Bakas told Reuters on Wednesday (Nov 13) at an oilseed conference in Dalian, China, that the contract is in its final stages, awaiting regulatory approvals. He added that the launch is expected either in December or in the first quarter of 2025, depending on approval, reported The Edge Malaysia.
The UCO futures contract follows the launch of a soybean oil futures contract in March.
Director Mohd Saleem said the bourse, known for offering the most liquid crude palm oil futures globally, is aiming to establish itself as a hub for edible oils.
Used cooking oil is an essential ingredient in producing renewable biofuels. Malaysia, the second-largest palm oil producer globally, exported close to 300,000 tonnes of biodiesel last year, with domestic consumption reaching about 1.1 million tonnes.
Director Mohd Saleem explained that the demand for used cooking oil has been rising due to sustainability efforts and biofuel mandates. He added that the unique aspect of their UCO contract is its focus on the Southeast Asian market, aligning with the region’s needs and industry trends. /TISG
