Palm Oil Monthly Update – July 2020

CME USD Malaysian Crude Palm Oil Volume and Open Interest

In June 2020, CME Crude Palm Oil volume totaled 6,045 lots (151,125 metric tons) and the end-of-month open interest was 27,705 lots (692,625 metric tons). Volume and end-of-month OI in the first three contract months were 2,345 and 10,468, respectively.

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

• Total volume: 2,385 lots. Volume in the first three contract months: 765 lots (dotted bars in the chart).
• Total end-of-month OI: 7,665 lots. Open interest in the first three contract months: 2,608 lots.

Malaysian Palm Oil Calendar swaps (CPC) performance:

• Total volume: 3,660 lots. Volume in the first three contract months: 1,580 lots (dotted bars in the chart).
• Total end-of-month OI: 20,040 lots. Open interest in the first three contract months: 7,860 lots.

USD Malaysian Crude Palm Oil price and volatility

USD Malaysian Crude Palm Oil futures* settles at $534.75 per metric ton in the end of June 2020, creating a $6.25 price movement from the beginning of the month.

During the month, 20-Day rolling volatility ranged from 29.7% to 36.1%, with an average of 32.3%.

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

Bean Oil – Palm Oil (BOPO)** price increased from $79.98 per ton in the beginning of the month, to $82.10 per ton at the end of the month. The monthly movement was $2.13.

Palm Oil – Gasoil (POGO)*** decreased from $234.75 per ton in the beginning of the month, to $182.50 per ton at the end of the month. The monthly movement was -$52.25.

* 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 between CBOT Soybean Oil Futures converted into USD/MT and USD Malaysian Crude Palm Oil Futures price.
*** Defined as the differential between USD Malaysian Crude Palm Oil Futures price and European Low Sulphur Gasoil Futures.

To learn more about futures and options, go to Benzinga’s futures and options education resource.