Palm Oil Monthly Update – July 2020

CME USD Malaysian Crude Palm Oil Volume and Open Interest

In June 2020, CME Crude Palm Oil volume totaled 6,045 lots (151,125 metric tons) and the end-of-month open interest was 27,705 lots (692,625 metric tons). Volume and end-of-month OI in the first three contract months were 2,345 and 10,468, respectively.

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

  • Total volume: 2,385 lots. Volume in the first three contract months: 765 lots (dotted bars in the chart).
  • Total end-of-month OI: 7,665 lots. Open interest in the first three contract months: 2,608 lots.

Malaysian Palm Oil Calendar swaps (CPC) performance:

  • Total volume: 3,660 lots. Volume in the first three contract months: 1,580 lots (dotted bars in the chart).
  • Total end-of-month OI: 20,040 lots. Open interest in the first three contract months: 7,860 lots.

USD Malaysian Crude Palm Oil price and volatility

USD Malaysian Crude Palm Oil futures* settles at $534.75 per metric ton in the end of June 2020, creating a $6.25 price movement from the beginning of the month.

During the month, 20-Day rolling volatility ranged from 29.7% to 36.1%, with an average of 32.3%.

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

Bean Oil – Palm Oil (BOPO)** price increased from $79.98 per ton in the beginning of the month, to $82.10 per ton at the end of the month. The monthly movement was $2.13.

Palm Oil – Gasoil (POGO)*** decreased from $234.75 per ton in the beginning of the month, to $182.50 per ton at the end of the month. The monthly movement was -$52.25.

* 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.