Palm oil futures slide after CME glitch hinders Malaysian trade

-A +A

KUALA LUMPUR/JAKARTA (Feb 27): Palm oil futures fell after a technical hitch at CME Group Inc. spilled over to Malaysia, causing an hour-long delay in the opening of the Bursa Malaysia Derivatives exchange.

Trading on Bursa Malaysia, which uses CME Globex as its electronic trading platform for futures, opened at 11:30 a.m. local time. Palm oil futures for May delivery reversed initial gains to drop as much as 1 percent.

Palm for May delivery on Bursa Malaysia Derivatives slid 1% to RM2,162 /ton, heading for lowest close since Jan. 15. 

“Luckily, there has not been any major market moving news for palm oil and soybean oil, or events overnight or this morning,” Gnanasekar Thiagarajan, head of trading and hedging strategies at Kaleesuwari Intercontinental, said before the
market reopened. 

“It’s frustrating to see such glitches, and if it happened on a market moving day, then all hell would break loose.”

The technical error at CME Group, the world’s largest exchange operator, also prevented the buying and selling of contracts tied to U.S. Treasuries, stock-futures and commodities including grains, crude oil and natural gas. They reopened at 9:45 p.m. Central Time Tuesday after a half-hour preopen, according to a bourse statement. That’s about three hours after they stopped.