On December 3, Dalian Commodity Exchange released the “Circular on the Adjustment of Designated Delivery (Factory) Warehouses of RBD Palm Olein” and adjusted the designated palm oil delivery warehouses, for the purpose of adapting to the changes of the cash market, meeting the demands of futures delivery, further expanding the capacity of RBD palm Olein delivery warehouse, improving the pattern and structure of delivery (factory) warehouses, ensuring smooth delivery and enhancing the capability to prevent risks.
Under the Circular, eight designated RBD palm Olein delivery (factory) warehouses are started or added and two stand-by warehouses are added or adjusted. After the adjustment, the minimum capacity of designated RBD palm Oleindelivery warehouses will increase by 71.4%, and the maximum registered volume of warehouse receipt will grow by 50%. The detailed arrangements of the warehouses involved are as follows: Start the stand-by warehouse Jiangsu Jianghai Grains and Oils Group Co., Ltd. as a designated delivery warehouse; establish Dongguan Cargill Grains and Oils Co., Ltd., Guangzhou Zhizhiyuan Oil Industry Co., Ltd., Cargill Grains and Oils (Nantong) Co., Ltd., Chinatex Oils (Tianjin) Co., Ltd., COFCO Excel Joy (Tianjin) Co., LTD. and Sinograin Oils (Tianjin) Co., Ltd. as designated RBD palm Olein delivery warehouses, set up Jingjiang Longwei Grains and Oils Industry Co., Ltd. as a designated RBD palm Olein delivery warehouse, and establish Yihai (Taizhou) Grains and Oils Industries Co., Ltd. as a stand-by warehouse, and adjust COFCO Northsea Industries (Tianjin) Co., LTD. from a designated delivery warehouse to a stand-by warehouse.
According to the director at the agricultural products division of DCE, General Administration of Quality Supervision, Inspection and Quarantine issued a “Circular on Further Strengthening the Inspection and Supervision of Imported Edible Vegetable Oils”, which provides that from January 1, 2013, “no edible vegetable oil that does not meet the current Chinese standard for food safety shall be imported.” Among imported edible vegetable oils, RBD palm Olein has a dramatic quality problem. Some importing enterprises concentrate their import of RBD palm Olein in the fourth quarter, and thus leading to a bad circulation of RBD palm Olein actuals and a shortage of port warehouse capacity. Meanwhile, enterprises have a greater demand for delivery at the futures market, which also results in tightening warehouse capacity. Based on the purpose of serving industries and ensuring the smooth and steady running of the futures trading, and the provision of the “Administrative Regulations on Futures Trading” that “exchanges shall not restrict the total volume of physical delivery”, DCE immediately starts to increase warehouses and gets the active cooperation from the related warehouses.
This director said that as the newly added delivery (factory) warehouses are located in their original delivery areas, no adjustment to premium or discount is involved in it. Large enterprises are started or established as designated delivery (factory) warehouses and stand-by warehouses which have obvious logistics advantages, great service capability and rich experience in commodity storage, service and management. And the designated delivery warehouses that can not provide delivery services at the moment are treated as stand-by warehouses, which is conducive to avoidance of a possible shortage of delivery warehouse capacity and to the smooth and sound development of the futures and actuals markets.
Market participants welcome the adjustment of delivery warehouses, and many member units and actuals enterprises that participate in RBD palm Olein delivery for all year long believe that this adjustment will greatly enhance the ability of delivery warehouses to resist against risks. Moreover, as this adjustment is made before RBD palm Olein 1301 contract warehouse receipt is registered, it effectively solves the problem proposed by the market that warehouse capacity may be not big enough, enhances market confidence, defuses potential risks, further raises RBD palm Olein delivery service level and promotes the communication between the markets of RBD palm Olein futures and actuals, and also gives a full play of the functions of the futures market.