Palm Oil Monthly Update ‒ September 2021

CME USD Malaysian Crude Palm Oil volume and open interest

In August 2021, CME Crude Palm Oil volume totaled 6,617 lots (165,425 metric tons) and the end of month open interest was 36,766 lots (919,150 metric tons). Volume and end of month OI in the first three contract months were 4,655 and 16,582 ‒ respectively.

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

  • Total volume: 4,317 lots. Volume in the first three contract months: 3,535 lots (dotted bars in the chart).
  • Total end of month OI: 11,346 lots. Open interest in the first three contract months: 3,312 lots.

Malaysian Palm Oil Calendar swaps (CPC) performance:

  • Total volume: 2,300 lots. Volume in the first three contract months: 1,120 lots (dotted bars in the chart).
  • Total end-of-month OI: 25,420 lots. Open interest in the first three contract months: 13,270 lots.

USD Malaysian Crude Palm Oil price and volatility

USD Malaysian Crude Palm Oil futures* settled at $1,012.00 per metric ton at the end of August 2021, creating a $79.50 price movement from the beginning of the month.

During the month, 20-Day rolling volatility ranged from 32.3% to 48.9%, with an average of 44.7%.

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

Bean Oil – Palm Oil (BOPO)** price decreased from $492.13 per ton at the beginning of the month, to $296.66 per ton at the end of the month. The monthly movement was -$195.46.

Palm Oil – Gasoil (POGO)*** increased from $336.25 per ton at the beginning of the month, to $410.50 per ton at the end of the month. The monthly movement was $74.25.

* 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.