Malaysian bourse to launch dollar-based crude palm oil futures - report

KUALA LUMPUR (Thomson Financial) - Bursa Malaysia Bhd, the country's stock exchange operator, plans to launch US dollar-denominated crude palm oil futures contracts in September, the Star newspaper reported, citing chief executive officer Yusli Mohamed Yusoff.

'There is huge interest in crude palm oil and we are quite hopeful that it will complement our ringgit contract, especially for traders who wish to trade in US dollars,' Yusli was quoted as saying.

Malaysia is the world's second-largest palm oil producer after Indonesia.

Rising demand from China and India, coupled with the government's move to mandate a five percent palm-oil based biofuel blend for all diesel have sent Malaysia's crude palm oil prices soaring over the past year.

(1 US dollar = 3.46 ringgit)