Palm Oil Monthly Update ‒ December 2021

Image provided by CME Group

USD Malaysian Crude Palm Oil volume and open interest

In November 2021, CME Crude Palm Oil volume totaled 31,152 lots (778,800 metric tons) and the end-of-month open interest was 55,075 lots (1,376,875 metric tons). Volume and end-of-month OI in the first three contract months were 10,502 and 18,703 respectively.

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

Total volume: 29,262 lots. Volume in the first three contract months: 8,612 lots (dotted bars in the chart).
Total end-of-month OI: 42,995 lots. Open interest in the first three contract months: 6,623 lots.

Malaysian Palm Oil Calendar swaps (CPC) performance:

Total volume: 1,890 lots. Volume in the first three contract months: 1,890 lots (dotted bars in the chart).
Total end-of-month OI: 12,080 lots. Open interest in the first three contract months: 12,080 lots.

Source: CME Group

USD Malaysian Crude Palm Oil price and volatility

USD Malaysian Crude Palm Oil futures* settled at $1,082.75 per metric ton at the end of November 2021, creating a -$62.00 price movement from the beginning of the month.

During the month, 20-Day rolling volatility ranged from 30.8% to 35.6%, with an average of 32.7%.

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 $221.45 per ton at the beginning of the month, to $132.22 per ton at the end of the month. The monthly movement was -$89.24.

Source: CME Group

Palm Oil – Gasoil (POGO)*** increased from $420.50 per ton at the beginning of the month, to $483.00 per ton at the end of the month. The monthly movement was $62.50.

Source: CME Group

The FOB Indonesia Basis****, the price spread between Indonesian and Malaysian crude oil palm, increased from $162.75 per ton at the beginning of the month, to $167.25 per ton at the end of the month. The monthly movement was $4.50.

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.

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