Futures and options exchange Bursa Malaysia Derivatives Berhad is aiming to launch a used cooking oil (UCO) futures contract in December to meet increasing demand for the product as a biofuel feedstock, the New Straits Times (NST) quoted the director of the Malaysian bourse as saying.
“It is already in the final stages. It is awaiting regulatory approvals,” Mohd Saleem Kader Bakas told Reuters during an oilseeds conference in Dalian, China.
Depending on the approvals, the contract could launch in December or in the first quarter of 2025, he said.
Bursa Malaysia’s UCO futures contract would follow the launch of its soyabean oil futures contract in March, NST wrote on 14 November.
The bourse was aiming to position itself as an edible oil hub, Mohd Saleem said.
Malaysia, the world’s second-largest producer of palm oil, exported almost 300,000 tonnes of biodiesel last year, while domestic consumption totalled around 1.1M tonnes, the report said.
“We are starting to see growing demand for used cooking oil as the market is driven by sustainability initiatives and biofuel mandates,” Mohd Saleem said.
Bursa Malaysia’s UCO contract would target the South-east Asian market, he added.
The bourse offers a crude palm oil contract and lists futures for other commodities including palm olein and tin.
