Bursa exploring launch of UCO futures contracts

In Malaysia, Bloomberg reports the Bursa is contemplating adding used cooking oil futures to compliment palm oil futures for hedging in the biodiesel market. Contract specification that have been shared with industry representatives show that proposed UCO futures contracts would be US dollar denominated, cash-settled, and priced against the FOB Straits assessment for used cooking oil by S&P Global Commodity Insights in lots of 25 metric tons. The Bursa has said that the specs could change based on feedback from the industry and regulatory approval.