Palm Oil Monthly Update ‒ January 2021

CME USD Malaysian Crude Palm Oil Volume and Open Interest

In December 2020, CME Crude Palm Oil volume totaled 8,789 lots (219,725 metric tons) and the end-of-month open interest was 23,728 lots (593,200 metric tons). Volume and end-of-month OI in the first three contract months were 2,909 and 8,832, respectively.

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

  • Total volume: 4,109 lots. Volume in the first three contract months: 2,429 lots (dotted bars in the chart).
  • Total end-of-month OI: 6,600 lots. Open interest in the first three contract months: 1,984 lots.

Malaysian Palm Oil Calendar swaps (CPC) performance:

  • Total volume: 4,680 lots. Volume in the first three contract months: 480 lots (dotted bars in the chart).
  • Total end-of-month OI: 17,128 lots. Open interest in the first three contract months: 6,848 lots.

USD Malaysian Crude Palm Oil price and volatility

USD Malaysian Crude Palm Oil futures* settled at $877.25 per metric ton at the end of December 2020, creating a $81.50 price movement from the beginning of the month.

During the month, 20-day rolling volatility ranged from 21.7% to 26.7%, with an average of 24.2%.

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

Bean Oil – Palm Oil (BOPO)** price increased from $28.78 per ton at the beginning of the month to $78.01 per ton at the end of the month. The monthly movement was $49.23.

Palm Oil – Gasoil (POGO)*** increased from $409.50 per ton at the beginning of the month to $456.50 per ton at the end of the month. The monthly movement was $47.00.

* 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 of settlement price between CBOT Soybean Oil futures converted into USD/MT and USD Malaysian Crude Palm Oil futures.

*** Defined as the differential of settlement price between USD Malaysian Crude Palm Oil futures and European Low Sulphur Gasoil futures.