Q2 2022 Ag Update

Recent geopolitical events combined with tight grain and oilseed supply have created unprecedented uncertainty in global agricultural markets. This has driven growth in both emerging and benchmark Agricultural futures and option products:

• The Crude Palm Oil suite of products struck the second highest quarterly volume record since inception, with a total volume of 68,389 contracts cleared in Q1.
• The Fertilizer futures suite has seen increased participation with average daily volume reaching 231 contracts in February (+61% YoY).
• The data graph below shows the implied volatility in 2008 vs. 2022 on the December Corn contract.

Source: Powered by QuikStrike

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• With the successful restructuring of the swap contract in January, all volumes and OI are now centered on the CME USD Malaysian Crude Palm Oil Calendar futures contract (CPO).
• CPO open interest stands out at 49,343 contracts at the end of March 2022, extending out to the Dec 2023 contract.
• Client interest and activity remained elevated as the edible oil prices continued to be driven by geopolitical risks, export restrictions, and biofuel mandates.

Source: USDA Oil Crops Yearbook

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View the current version and an archive of the Ag Update online at cmegroup.com/education/ag-update.html