Palm Oil Monthly Update ‒ July 2021

CME USD Malaysian Crude Palm Oil Volume and Open Interest

In June 2021, CME Crude Palm Oil volume totaled 33,966 lots (849,150 metric tons) and the end-of-month open interest was 40,140 lots (1,003,500 metric tons). Volume and end-of-month OI in the first three contract months were 7,026 and 12,600, respectively.

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

  • Total volume: 6,206 lots. Volume in the first three contract months: 1,836 lots (dotted bars in the chart).
  • Total end-of-month OI: 10,620 lots. Open interest in the first three contract months: 3,020 lots.

Malaysian Palm Oil Calendar swaps (CPC) performance:

  • Total volume: 27,760 lots. Volume in the first three contract months: 5,190 lots (dotted bars in the chart).
  • Total end-of-month OI: 29,520 lots. Open interest in the first three contract months: 9,580 lots.

Source: CME Group

Source: CME Group

USD Malaysian Crude Palm Oil price and volatility

USD Malaysian Crude Palm Oil futures* settled at $855.00 per metric ton at the end of June 2021, creating a -$66.25 price movement from the beginning of the month. During the month, 20-Day rolling volatility ranged from 43.3% to 56.9%, with an average of 49.4%.

Source: CME Group

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

Bean Oil – Palm Oil (BOPO)** price increased from $564.44 per ton at the beginning of the month, to $581.53 per ton at the end of the month. The monthly movement was $17.09.

Source: CME Group

Palm Oil – Gasoil (POGO)*** decreased from $348.25 per ton at the beginning of the month, to $258.25 per ton at the end of the month. The monthly movement was -$90.00.

Source: CME Group

* 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.