Palm Oil Apr '22 (KOJ22)
|Tick Size||1 point per metric tonne (MYR 25.00 per contract)|
|Daily Limit||100 points per metric tonne (MYR 2,500 per contract)|
|Contract Size||25 metric tonnes|
|Trading Hours||10:30a.m. - 12:30p.m. and 2:30p.m. - 6:00p.m. and 9:00p.m. - 11:30p.m. (Kuala Lumpur)|
|Value of One Futures Unit||MYR 25|
|Value of One Options Unit||MYR 25|
|Last Trading Day||Trading day before the 15th day of the delivery month|
Palm oil is an edible vegetable oil produced from the flesh of the fruit of the oil palm tree. The oil palm tree is a tropical palm tree that is a native of the west coast of Africa and is different from the coconut palm tree. The fruit of the oil palm tree is reddish, about the size of a large plum, and grows in large bunches. A single seed, the palm kernel, is contained in each fruit. Oil is extracted from both the pulp of the fruit (becoming palm oil) and the kernel (palm kernel oil). About one metric ton of palm kernel oil is obtained for every ten metric tons of palm oil.
Palm oil is commercially used in soap, ointments, cosmetics, detergents, and machinery lubricants. It is also used worldwide as cooking oil, shortening, and margarine. Palm kernel oil is a lighter oil and is used exclusively for food use. Crude palm oil and crude palm kernel oil are traded on the Kuala Lumpur Commodity Exchange.
Prices - The monthly average wholesale price of palm oil (CIF, bulk, U.S. ports) in 2018 (latest data) fell by -12.4% yr/yr to 31.16 cents per pound, well below the 2011 record high of 55.98 cents per pound.
Supply - World production of palm oil in the 2017/18 (latest data) marketing year rose by +7.6% to 69.774 million metric tons. World palm oil production has grown by more than thirty times the production level of 1.922 million metric tons seen back in 1970. Indonesia and Malaysia are the world's two major global producers of palm oil. Indonesian production in 2017/18 rose +6.9% yr/yr to a record high of 38.500 million metric tons, and Indonesian production will account for 55.2% of world production. Malaysian production in 2017/18 rose +8.7% to a record high of 20.500 million metric tons, and Malaysian production will account for 31.0% of world production. Other smaller global producers include Thailand with 3.9% of world production, Columbia with 2.3%, and Nigeria with 1.4%.
Demand - U.S. total disappearance of palm oil in 2017/18 (latest data) rose +4.7% yr/yr to 1.629 million metric tons, which is a new record high.
Trade - World palm oil exports in 2017/18 (latest data) rose +2.7% to 50.121 million metric tons, which is a new record high. The world's largest exporters were Indonesia with a 56.9% share of world exports and Malaysia with a share of 34.5%. World palm oil imports in 2017/18 rose +2.8% to 47.177 million metric tons. The world's largest importers were India with a 22.5% share of world imports and the European Union with a 13.8% share.
Information on commodities is courtesy of the CRB Yearbook, the single most comprehensive source of commodity and futures market information available. Its sources - reports from governments, private industries, and trade and industrial associations - are authoritative, and its historical scope for commodities information is second to none. The CRB Yearbook is part of the Barchart product line. Please visit us for all of your commodity data needs.