Palm Oil Monthly Update – August 2020

CME USD Malaysian Crude Palm Oil Volume and Open Interest

In July 2020, CME Crude Palm Oil volume totaled 6,539 lots (163,475 metric tons) and the end-of-month open interest was 24,612 lots (615,300 metric tons). Volume and end-of-month OI in the first three contract months were 2,725 and 11,192, respectively.

USD Malaysian Crude Palm Oil Calendar futures (CPO) performance:

  • Total Volume: 3,239 lots. Volume in the first three contract months: 2,285 lots (dotted bars in the chart).
  • Total End-of-Month OI: 6,592 lots. Open interest in the first three contract months: 2,472 lots."

Malaysian Palm Oil calendar swaps (CPC) performance:

  • Total Volume: 3,300 lots. Volume in the first three contract months: 440 lots (dotted bars in the chart).
  • Total End-of-Month OI: 18,020 lots. Open interest in the first three contract months: 8,720 lots.

USD Malaysian Crude Palm Oil price and volatility

USD Malaysian Crude Palm Oil futures* settles at $626.50 per metric ton at the end of July 2020, creating a $87.25 price movement from the beginning of the month.

During the month, 20-day rolling volatility ranged from 24.0% to 29.3%, with an average of 27.1%.

Bean Oil – Palm Oil spread and Palm Oil – Gasoil spread price

Bean Oil – Palm Oil (BOPO)** price decreased from $82.67 per ton in the beginning of the month, to $54.95 per ton at the end of the month. The monthly movement was -$27.73.

Palm Oil – Gasoil (POGO)*** increased from $181.75 per ton in the beginning of the month, to $261.50 per ton at the end of the month. The monthly movement was $79.75.

* Based on USD Malaysian Crude Palm Oil Futures first nearby contract month that is not in the monthly averaging period. Contract month rolls at the beginning of each month.
** Defined as the differential between CBOT Soybean Oil Futures converted into USD/MT and USD Malaysian Crude Palm Oil Futures price.
*** Defined as the differential between USD Malaysian Crude Palm Oil Futures price and European Low Sulphur Gasoil Futures.