DCE RBDPalm OleinFutures

This brochure is prepared by DCE for the sole purpose of providing general

information about the futures market in China.

Certain of the information contained in this brochure has been obtained from

published sources prepared by other parties. Whilst sources are believed to be

reliable, neither DCE nor any other person accepts responsibility for the

accuracy or completeness of such information. No representation or warranty,

express or implied is given in connection with any information given in this

brochure and no responsibility is accepted by DCE, its associates or any of

their directors, officers, employees or agents, in respect thereof. The delivery

of this brochure does not imply that the information herein is correct.

All statements of opinion and/or belief contained in this brochure and all

views expressed and all projections, forecasts or statements relating to

expectations regarding future events or the possible future performance of

DCE represent its own assessment and interpretation of information available

to it as at the date of this document. No representation is made or assurance

given that such statements, views, projections or forecasts are correct or that

the objectives of DCE will be achieved.

Address: No.129 Huizhan Road, Dalian 116023, China

Tel: (86) 411- 8480 8888 Fax: (86) 411- 8480 8588

www.dce.com.cn

Dalian Commodity Exchange. All rights reserved.

Opening-upOn May 4th 2018, DCE introduced overseas clients into its iron ore

futures unprecedentedly. There are two routes available for overseas

clients who could open accounts either through DCE futures company

members directly or through carrying-brokerage channel where they

have access to DCE futures company members via registered overseas

brokers. DCE is currently devoted to open up more products for

overseas clients.

Direct AccountOpening

Carrying-brokerage

DCE

Futures Company Members

Overseas Brokers

Overseas Clients

2019 DCE Annual Trading

billion lots1.36

FIA ranking11th

million lots of dailytrading volume

5.56

million lots of dailyopen interest

6.72

Dalian Commodity Exchange (DCE)Established in 1993, Dalian Commodity Exchange (DCE) is one of the

four futures exchanges under the supervision and administration of

the China Securities Regulatory Commission (CSRC) upon approval of

the State Council. Currently DCE has 19 listed futures and 3 options

approved by the CSRC. DCE futures products cover agricultural,

petrochemical, energy and metal sectors, serving several important

industries in China’s national economy.

The DCE futures market helps in price discovery and risk management

for market participants and facilitates the development of related

industries. In 2019, DCE was ranked 11th by the Futures Industry

Association (FIA) in terms of total trading volume.

-

200

400

600

800

1,000

1,200

1,400

1,600

1993 1995 1997 1999 2001 2003 2005 2007 2009 2010 2013 2015 2017 2019

DCE's Trading Volume by Year(million lots)

Source: DCE

Palm Oil Physical Market

*futures se lement prices refer to se lement prices of dominant contracts

DCE RBD Palm Olein futures is closely related to the palm oil physical

market. The prices of BMD Palm Oil futures (FCPO), perceived as the

pricing benchmark of the palm oil physical market, have strong

correlations with DCE prices. DCE has provided industrial participants a

reliable tool for hedging, price risk mitigation as well as profit margin

management, industrial participants could better manage trading

volumes and inventory based on DCE futures prices and spot prices of

producing regions.

High Correlations with Physical Market

RM/M

T

CNY/

MT

3,000

4,000

5,000

6,000

7,000

2017/1 2017/6 2017/11 2018/4 2018/9 2019/2 2019/7 2019/12

1,500

2,000

2,500

3,000

3,500

Palm Oil Futures Se lement Price VS Palm Oil Spot Price

DCE RBD Palm Olein Se lement Price (CNY/MT)Palm Oil Spot Price (CNY/MT) BMD FCPO Se lement Price (RM/MT)

Palm oil is the vegetable oil with the largest output and trading

volume worldwide. According to USDA projection, the global palm oil

output in 2019 would reach around 75 million metric tonnes, which

represents a 63% increase in comparison with the 2009 output level.

The main producing regions of palm oil are Indonesia and Malaysia

which together account for over 85% of global production.

The global palm oil consumption volume has been steadily escalating,

with India and China being main importers. USDA projected that the 2019

global consumption would reach 74 million metric tonnes. Especially for

India, which consumed over 12 million metric tonnes of palm oil in 2019,

experienced a 103% increase in comparison with 2010 level.

Supply and Demand

Source: DCE

Trading Volume Open Interest

Daily Trading Volume and Open Interest of DCE RBD Palm Olein Futures(2007.10-2020.12)

Source: DCE

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

400,000300,000200,000100,0000

500,000600,000700,000800,000900,0001,000,000

2007.102008.10

2014.102013.10

2012.102011.10

2010.102009.10

2015.102016.10

2017.102018.10

2019.102020.10

UNIT: lots

2019 Annual Trading

billion metrictonnes

1.35correla on with

BMD FCPO

0.98thousand lots of

daily trading volume

555thousand lots of

daily open interest

418

DCE RBD Palm Olein Futures

Since its launch in October 2007, DCE RBD Palm Olein futures contracts

have evolved into the most traded palm oil futures product worldwide.

Especially in the past Q4 2019, the daily trading volume and open

interest have reached an all-time high which were 27.6 million metric

tonnes and 9.1 million metric tonnes respectively.

Trading Statistics

DCE agricultural futures market is

well acknowledged for its maturity,

large liquidity and active

participation of industrial clients.

Major industrial enterprises already

have a long history of participating

in DCE futures market.

For RBD Palm Olein, over half of the

open interest are held by our

corporate clients who also

contribute almost 40% of the overall

trading volume.

Market Structure

Source: DCE, based on 2019 trading sta s cs

34%

66%

TradingVolume

OpenInterest 54%

46%

IndividualClients

CorporateClients

Contract Specification

*DCE may adjust the daily price limit ranges and the trading margins of each contract according to market condi ons.

������������ ���

� ������������

Product

Trading Unit

Price Quote Unit

Minimum Tick Size

Contract Months

Trading Hours

Last Trading Day

Last Delivery Day

Deliverable Grades

Delivery Point

Delivery Form

Ticker Symbol

Listed Exchange

10 MT/Lot

CNY/MT

2 CNY/MT

4% of last se lement price

Jan, Feb, Mar, Apr, May, Jun, Jul, Aug, Sep, Oct, Nov, Dec

The 10th trading day of the contract month

The 3rd trading day a er the last trading day

5% of the contract value

Physical delivery

P

DCE

9:00 - 11:30 a.m., 1:30 - 3:00 p.m., Beijing Time, Monday to Friday, and other trading hours announced by DCE

RBD Palm Olein

RBD Palm Olein Delivery Quality Standard of DCE (F/DCE P002-2011)

The delivery warehouses of RBD Palm Olein designated by DCE

Minimum TradingMargin*

Daily Price LimitRange*

Source: USDA

Palm Oil Output (million metric tonnes)

Source: USDA

Palm Oil Consump on (million metric tonnes)

Indonesia Malaysia Thailand Others

Indonesia India China EU Malaysia

China Palm Oil Import Volume (million metric tonnes)

Source: DCE

As the second largest importer and third largest consuming country,

China’s palm oil supply entirely depends on import from producing

countries such as Indonesia and Malaysia. For China, the 2019 annual

consumption of palm oil was estimated to be around 7.2 million metric

tonnes which marked a record high.

China: Second Largest Importer of Palm Oil

0 1 2 3 4 5 6 7 8 9 10

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

01020304050607080

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

05

1015202530354045

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Indonesia

Malaysia

Source ofimport by

region 2019

67%

33%