Palm Oil Monthly Update ‒ September 2020

CME USD Malaysian Crude Palm Oil Volume and Open Interest

In August 2020, CME Crude Palm Oil volume totaled 4,141 lots (103,525 metric tons) and the end-of-month open interest was 22,603 lots (565,075 metric tons). Volume and end-of-month OI in the first three contract months were 2,181 and 11,853, respectively.

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

  • Total volume: 2,401 lots. Volume in the first three contract months: 1,801 lots (dotted bars in the chart).
  • Total end-of-month OI: 7,443 lots. Open interest in the first three contract months: 3,493 lots.

Malaysian Palm Oil Calendar swaps (CPC) performance:

  • Total volume: 1,740 lots. Volume in the first three contract months: 380 lots (dotted bars in the chart).
  • Total end-of-month OI: 15,160 lots. Open interest in the first three contract months: 8,360 lots.

USD Malaysian Crude Palm Oil price and volatility

USD Malaysian Crude Palm Oil futures* settles at $653.75 per metric ton at the end of August 2020, creating a $21.75 price movement from the beginning of the month.

During the month, 20-day rolling volatility ranged from 21.2% to 29.2%, with an average of 25.5%.

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

Bean Oil – Palm Oil (BOPO)** price increased from $66.20 per ton in the beginning of the month, to $72.89 per ton at the end of the month. The monthly movement was $6.69.

Palm Oil – Gasoil (POGO)*** increased from $262.00 per ton in the beginning of the month, to $291.75 per ton at the end of the month. The monthly movement was $29.75.

* 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 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.