Palm Oil Monthly Update ‒ November 2020

CME USD Malaysian Crude Palm Oil Volume and Open Interest

In October 2020, CME Crude Palm Oil volume totaled 8,853 lots (221,325 metric tons) and the end-of-month open interest was 21,740 lots (543,500 metric tons). Volume and end-of-month OI in the first three contract months were 4,151 and 10,644, respectively.

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

  • Total volume: 3,650 lots. Volume in the first three contract months: 3,103 lots (dotted bars in the chart).
  • Total end-of-month OI: 6,783 lots. Open interest in the first three contract months: 2,296 lots.

Malaysian Palm Oil Calendar swaps (CPC) performance:

  • Total volume: 5,203 lots. Volume in the first three contract months: 1,048 lots (dotted bars in the chart).
  • Total end-of-month OI: 14,957 lots. Open interest in the first three contract months: 8,348 lots.

USD Malaysian Crude Palm Oil price and volatility

USD Malaysian Crude Palm Oil futures* settled at $712.25 per metric ton at the end of October 2020, creating a $53.50 price movement from the beginning of the month.

During the month, 20-day rolling volatility ranged from 29.1% to 38.8%, with an average of 35.3%.

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

Bean Oil – Palm Oil (BOPO)** price decreased from $61.06 per ton at the beginning of the month to $28.72 per ton at the end of the month. The monthly movement was -$32.34.

Palm Oil – Gasoil (POGO)*** increased from $341.75 per ton at the beginning of the month, to $407.25 per ton at the end of the month. The monthly movement was $65.50.

* 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.