FCPO is a derivative contract between a buyer and a seller to take and make delivery respectively of Crude Palm Oil (CPO) at a future date.

It is physically settled, meaning that upon expiry, the buyer and seller must take and make delivery of the physical CPO.

The deliverable unit per FCPO contract is 25 metric tons, with a tolerance of ± not more than 2%.

Settlement of weight differences is based on the simple average of the Daily Settlement Prices of the delivery month and is published on Bursa Malaysia's website the day after expiry.

No minimum number of contracts is specified. You may deliver or take delivery of a single contract (25 metric tons).

Delivery can be made at the seller's option at registered Port Tank Installations (PTIs) located at Port Klang, Butterworth and Pasir Gudang.

CPO must be of good merchantable quality, in bulk and unbleached, meeting the following specifications:

Free Fatty Acids (FFA)
In tank: not exceeding 4%
Out tank: not exceeding 5%

Moisture & Impurities (M&I)
Not exceeding 0.25%

Deterioration of Bleachability Index (DOBI)
In tank: minimum of 2.5
Out tank: minimum of 2.31

The delivery period runs from the 1st business day to the 20th day of the spot/delivery month, or the preceding business day if the 20th is a non-business day. The exact day of delivery is at the seller's option.

You can find the number of contracts tendered and top delivery locations in Bursa Malaysia's delivery summary.