BEIJING (XFN-ASIA) - Dalian Commodity Exchange is expected to launch palm oil futures this year, the China Business News reported, citing sources.

The exchange has a pending application from last year with the China Securities Regulatory Commission (CSRC) to launch the futures products, the report said.

In 2006, Dalian Commodity Exchange signed a memorandum of understanding (MOU) with Bursa Malaysia Bhd, the world’s biggest palm oil futures exchange, to cooperate on the development of a commodities market, it said.

According to the MOU, Bursa Malaysia will also assist Dalian Commodity Exchange in developing a palm oil futures product.

Should approval be granted, the commodity will be the fourth futures product to be launched this year on domestic markets, after zinc, rapeseed oil and linear low density polyethene (LLDPE) futures.

Palm oil is the world’s most heavily traded vegetable oil.

China currently has three futures exchanges - Shanghai Futures Exchange, Zhengzhou Commodity Exchange and Dalian Commodity Exchange.

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