Palm Oil Monthly Update – June 2020

CME USD Malaysian Crude Palm Oil Volume and Open Interest

In May 2020, CME crude palm oil volume totaled 4,288 lots (107,200 metric tons), and the end-of-month open interest was 29,393 lots (734,825 metric tons). Volume and end-of-month OI in the first three contract months were 928 and 9,459, respectively.

USD Malaysian Crude Palm Oil Calendar Futures (CPO) performance:­
Total Volume: 1,908 lots. Volume in the first three contract months: 588 lots (dotted bars in the chart)
Total End-of-Month OI: 7,173 lots. Open interest in the first three contract months: 2,339 lots.

Malaysian Palm Oil Calendar Swaps (CPC) performance:­
Total Volume: 2,380 lots. Volume in the first three contract months: 340 lots (dotted bars in the chart)
Total End-of-Month OI: 22,220 lots. Open interest in the first three contract months: 7,120 lots.

USD Malaysian Crude Palm Oil price and volatility

USD Malaysian Crude Palm Oil futures* settles at $527.00 per metric ton in the end of May 2020, creating a $46.00 price movement from the beginning of the month.

During the month, 20-Day rolling volatility ranged from 32.2% to 44.5%, with an average of 39.3%.

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

Bean Oil – Palm Oil (BOPO)** price decreased from $95.29 per ton in the beginning of the month, to $76.63 per ton by the end of the month. The monthly movement was -$18.66.

Palm Oil – Gasoil (POGO)*** decreased from $261.00 per ton at the beginning of the month, to $243.25 per ton by the end of the month. The monthly movement was -$17.75.

* 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.