Palm Oil Monthly Update ‒ October 2020

CME USD Malaysian Crude Palm Oil Volume and Open Interest

In September 2020, CME crude palm oil volume totaled 10,021 lots (250,525 metric tons) and the end-of-month open interest was 24,976 lots (624,400 metric tons). Volume and end-of-month OI in the first three contract months were 2,527 and 12,052, respectively.

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

• Total volume: 4,721 lots. Volume in the first three contract months: 1,887 lots (dotted bars in the chart).
• Total end-of-month OI: 8,836 lots. Open interest in the first three contract months: 3,832 lots.

Malaysian Palm Oil Calendar swaps (CPC) performance:

• Total volume: 5,300 lots. Volume in the first three contract months: 640 lots (dotted bars in the chart).
• Total end-of-month OI: 16,140 lots. Open interest in the first three contract months: 8,220 lots.

USD Malaysian Crude Palm Oil price and volatility

USD Malaysian Crude Palm Oil futures* settled at $649.00 per metric ton at the end of September 2020, creating a -$12.75 price movement from the beginning of the month.

During the month, 20-day rolling volatility ranged from 22.5% to 37.1%, with an average of 28.2%.

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

Bean Oil – Palm Oil (BOPO)** price increased from $68.42 per ton at the beginning of the month to $86.68 per ton at the end of the month. The monthly movement was $18.26.

Palm Oil – Gasoil (POGO)*** increased from $296.00 per ton at the beginning of the month to $319.50 per ton at the end of the month. The monthly movement was $23.50.

* 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.

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