Palm Oil Monthly Update ‒ December 2020

CME USD Malaysian Crude Palm Oil Volume and Open Interest

In November 2020, CME Crude Palm Oil volume totaled 14,020 lots (350,500 metric tons) and the end-of-month open interest was 24,125 lots (603,125 metric tons). Volume and end-of-month OI in the first three contract months were 3,064 and 9,531 respectively.

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

  • Total Volume: 2,841 lots. Volume in the first three contract months: 1,331 lots (dotted bars in the chart).
  • Total End-of-Month OI: 6,577 lots. Open interest in the first three contract months: 2,013 lots.

Malaysian Palm Oil Calendar Swaps (CPC) performance:

  • Total Volume: 11,179 lots. Volume in the first three contract months: 1,733 lots (dotted bars in the chart).
  • Total End-of-Month OI: 17,548 lots. Open interest in the first three contract months: 7,518 lots.

USD Malaysian Crude Palm Oil price and volatility

USD Malaysian Crude Palm Oil futures* settled at $804.25 per metric ton at the end of November 2020, creating a $113.75 price movement from the beginning of the month.

During the month, 20-day rolling volatility ranged from 26.6% to 33.1%, with an average of 30.0%.

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

Bean Oil – Palm Oil (BOPO)** price decreased from $41.21 per ton in the beginning of the month, to $30.86 per ton at the end of the month. The monthly movement was -$10.35.

Palm Oil – Gasoil (POGO)*** increased from $383.25 per ton in the beginning of the month, to $417.25 per ton at the end of the month. The monthly movement was $34.00.

* 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.