Published On: Thu, Nov 26th, 2009

DCE Has Become the World’s Largest Food Oil Exchange

Liu Xingqiang, President of the Dalian Commodity Exchange (DCE), said during his speech at the Fourth International Oil and Oilseeds Conference that during the first 10 months of the year, trading volume in palm oil and soybean oil futures at the Dalian Commodities Exchange has ranked first globally among exchanges trading in the same products, and the DCE has become the world’s largest food oil futures market.  He also said that, on the whole, industrial customers’ usage of the futures market is still at a low level, and the oils and oilseeds industry and futures industry need to strengthen communication and cooperation with each other.

Liu Xingqiang also said that China is the world’s leading producer and consumer of oils and oilseeds, and the DCE has undergone rapid development.  Through October of this year, The Dalian Futures Market traded 653 million contracts, with soybeans, soybean meal, soybean oil and palm oil taking up 527 million of the contracts (80.63% of Dalian’s total trading volume and 31.91% of China’s total futures trading volume), which is an increase of 27.74% over last year.  In the international market, among the top 20 agricultural futures and options contracts traded by volume, the DCE’s soybean, soybean meal, and soybean oil contracts ranked second, third, and seventh respectively, while its palm oil contract, despite only being on the market for one year, still managed to break into the top 20.
Trading volume in palm oil and soybean oil futures at the Dalian Commodities Exchange has ranked first globally among exchanges trading in the same products, and the DCE has become the world’s largest food oil futures market.
According to the statistics, from January to September of this year, 3,343 corporate enterprises have participated in trading of oil and oilseed products at the DCE, representing 7.78% of total volume and 52.56% of total positions.
Mr. Liu also pointed out that, despite the great size of the market, on the whole, the number of industrial customers using the futures market is still quite low.  According to a survey, 48.9% of international oil and oilseeds enterprises have made use of derivative instruments, while in China the rate is less than 10%.  He also said that, among both large domestic and international grain and oil enterprises, participation in the oil and oilseeds futures market has been relatively more active.  Some of the domestic enterprises that have participated in the market include COFCO and Yi Hai Kerry Group, while all four major foreign groups ADM, Bunge, Cargill and Louis Dreyfus have participated.

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