Palm Oil Monthly Update ‒ August 2021

CME USD Malaysian Crude Palm Oil volume and open interest

In July 2021, CME Crude Palm Oil volume totaled 17,239 lots (430,975 metric tons) and the end-of-month open interest was 39,587 lots (989,675 metric tons). Volume and end-of-month OI in the first three contract months were 6,165 and 13,440, respectively.

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

  • Total volume: 4,619 lots. Volume in the first three contract months: 1,485 lots (dotted bars in the chart).
  • Total end-of-month OI: 10,867 lots. Open interest in the first three contract months: 2,260 lots.

Malaysian Palm Oil Calendar swaps (CPC) performance:

  • Total volume: 12,620 lots. Volume in the first three contract months: 4,680 lots (dotted bars in the chart).
  • Total end-of-month OI: 28,720 lots. Open interest in the first three contract months: 11,180 lots.

USD Malaysian Crude Palm Oil price and volatility

USD Malaysian Crude Palm Oil futures* settled at $1,015.00 per metric ton at the end of July 2021, creating a $151.25 price movement from the beginning of the month. During the month, 20-Day rolling volatility ranged from 22.3% to 45.3%, with an average of 31.5%.

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

Bean Oil – Palm Oil (BOPO)** price decreased from $570.14 per ton at the beginning of the month, to $436.08 per ton at the end of the month. The monthly movement was -$134.05.

Palm Oil – Gasoil (POGO)*** increased from $257.75 per ton at the beginning of the month, to $401.75 per ton at the end of the month. The monthly movement was $144.00.

* 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.