Futures and options exchange Bursa Malaysia Derivatives Berhad (BMD) has announced the completion of the first physical delivery of its East Malaysia Crude Palm Oil Futures Contract (FEPO) in the Malaysian state of Sarawak.

The delivery of 10 contracts at one of the approved Port Tank Installations (“PTIs”) in Bintulu, represented 250 tonnes of crude palm oil (CPO), the company said in the 14 June statement.

The PTI is operated by Biport Bulkers Sdn Bhd, a wholly owned subsidiary of Bintulu Port Holdings.

Following the delivery on 10 June, BMD said physical deliveries under the FEPO contract had now taken place in all three PTIs in East Malaysia – Sandakan, Lahad Datu and Bintulu.

“The FEPO, which was launched in October 2021, aims to provide an effective instrument for physical players and participants in the East Malaysia palm oil market to manage price risk, particularly in a highly volatile environment,” BMD CEO Samuel Ho said.

All physical deliveries made under BMD’s Crude Palm Oil Futures (FCPO) and FEPO contracts must be sourced from palm oil mills that meet the Oil Palm Management Certification (OPMC) under the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme’s requirements.