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USAgNet - March 11, 2010
CME Group announced the launch of a dollar-denominated, cash-settled crude palm oil futures contract scheduled to begin trading on May 23, 2010, for trade date May 24. Crude palm oil is the most
consumed edible oil in the world. These contracts will be listed with, and subject to, the rules and regulations of CME.
Crude palm oil is contained in a multitude of diverse products, from cooking oils and soaps to biodiesel fuel. Settlement prices at expiration of the new electronically traded futures contract will be based on
Bursa Malaysia Derivatives Berhad Crude Palm Oil futures, the global benchmark for crude palm oil pricing that is traded in Malaysian ringgit.
The use of the settlement prices is part of the strategic partnership agreement CME Group and Bursa Malaysia announced in August that includes a provision for CME Globex electronic trading services and
an equity investment in Bursa Malaysia by CME Group.
Each contract will be equivalent to 25 metric tons of crude palm oil.
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