Palm Oil Monthly Update ‒ February 2022

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CME USD Malaysian Crude Palm Oil futures volume and open interest

In January 2022, CME Crude Palm Oil volume totaled 19,660 lots (491,500 metric tons) and the end-of-month open interest was 52,520 lots (1,313,000 metric tons).

Volume in the first three contract months were 9,760 which was about 50% of the total monthly volume.

End-of-month open interest in the first three contract months were 18,710 which was about 36% of the total open interest.

Source: CME Group

Source: CME Group

USD Malaysian Crude Palm Oil price and volatility

USD Malaysian Crude Palm Oil futures* settled at $1,313.00 per metric ton at the end of January 2022, creating a $213.50 price movement from the beginning of the month.

During the month, 20-day rolling volatility ranged from 23.7% to 37.6%, with an average of 30.0%.

Source: CME Group

Bean Oil – Palm Oil Spread, Palm Oil – Gasoil Spread Price and Palm Oil FOB Indonesia basis price

Bean Oil – Palm Oil (BOPO)** price decreased from $139.72 per ton at the beginning of the month, to $116.04 per ton at the end of the month. The monthly movement was -$23.68.

Source: CME Group

Palm Oil – Gasoil (POGO)*** increased from $423.50 per ton at the beginning of the month, to $516.75 per ton at the end of the month. The monthly movement was $93.25.

Source: CME Group

The FOB Indonesia basis****, the price spread between Indonesian and Malaysian crude oil palm, decreased from $160.50 per ton at the beginning of the month, to $127.00 per ton at the end of the month. The monthly movement was -$33.50.

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.
**** Calculated as the differential between the Refinitiv crude palm oil FOB Indonesia third forward month price and the settlement price of USD Malaysian Crude Palm Oil futures.