palm oil

Omega · Post by **Omega** » Tue Sep 18, 2012 9:34 pm

Anyone know of a broker through whom you can trade the Malaysian palm oil future? The CME and Singapore CPO futures have little volume and IB doesnt support it.

Tradenator · Post by **Tradenator** » Wed Sep 19, 2012 1:58 am

MFGlobal? D'oh! Sorry...

Most of the major brokers do and some of the smaller FCMs as well. Try FCStone, RJO'Brien, or banks like GS, JPM, etc. Even Macquarie.

EDIT: maybe move this thread to trading?

Omega · Post by **Omega** » Fri Sep 21, 2012 1:34 pm

How do I move this to the trading section?

Reactor Core · Post by **Reactor Core** » Fri Sep 21, 2012 2:04 pm

This thread was moved from [url=/Show%20Forum.aspx?ForumIDKey=1]General[/url] to [url=/Show%20Forum.aspx?ForumIDKey=2]Trading[/url].

Patrik · Post by **Patrik** » Mon Sep 24, 2012 7:47 pm

I used to trade a lot of palm oil and had a great execution broker in KL who'd I'd happily recommend to anyone. I can't remember the company name (not big firm but they knocked the socks off the bigger names) now just his name (and his yahoo). Feel free to PM me for that info - I probably shouldn't put it on a public website. Given it is open in the night LDN time I never bothered finding a direct hookup and just gave complicated orders to this guy via email and went to sleep. He probably did it better than I would have had I been clicking and trading myself to be honest, talented dude. Cursory search at the time (~3y ago) didn't turn up any good alternatives for click-n-trade.

Palm is a tad tricky given it's traded in MYR which is a restricted currency so need to do some NDFs etc for hedging (assuming you're not MYR based Smiley ).

It's a great little market, I really enjoyed it.

liquidity peddler · Post by **liquidity peddler** » Tue Sep 25, 2012 4:00 am

Sorry for the trade jack Patrik, but could you describe in what way your broker was good?

Thinking about how I should evaluate a broker's ability to add value when executing in smaller markets.

Patrik · Post by **Patrik** » Tue Sep 25, 2012 9:39 pm

In this case the workflow was pretty much like this:

In LDN last thing I did before going to bed was write a pretty convoluted email with instructions to the broker (not an employee of same firm or anything, just a standalone execution broker in KL). It'd have some assumptions on where I think it'd open (based on bean oil price change since palm closed prev day, and other outside markets and palm specific info), some ideas of how many lots I'd want to have sold at what levels, some relatively conditional orders (if sold here, rebuy there) etc. I.e. my attempt at formalizing my trading plan for the session for him to execute while I was sleeping in LDN.

Turned out he was very reliable and easy to work with, not making errors etc - and as time went by gave him more discretion - as in "I think it'll open up X MYR/mt, but if you feel it's much stronger feel free to use some discretion as long as I've sold at least Y lots by the time we get to 3000 MYR/mt". Or just in general give general game plan and have him use some discretion to adjust around that depending on price action, newsflow etc.

At the end of the day if I compared his fills with just executing the fixed levels of the overall plan he was given he made us quite a bit of money above and beyond that. That's always the final value add - real USD in the bank Smiley

liquidity peddler · Post by **liquidity peddler** » Wed Sep 26, 2012 4:09 am

Thanks Patrik, what you said sounds very sensible indeed!