DCE Palm Olein Sep '22 (YHU22)
|Contract||RBD Palm Olein [Palm Oil]|
|Tick Size||2 Yuan per metric ton (CNY 20 per contract)|
|Daily Limit||4% of last settlement price (temporarily 5%)|
|Contract Size||10 Metric Tons|
|Trading Hours||9:00a.m. - 11:30a.m. and 1:30p.m. - 3:00p.m. (beijing)|
|Value of One Futures Unit||CNY 10|
|Value of One Options Unit||CNY 10|
|Last Trading Day||The tenth business trading 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 2020 rose by +23.5% yr/yr to 36.61 cents per pound, well below the 2011 record high of 55.98 cents per pound.
Supply - World production of palm oil in the 2020/21 marketing year rose by +2.6% to 75.093 million metric tons, a new record high. World palm oil production has grown sharply from 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 2020/21 rose +2.4% yr/yr to a record high of 43.500 million metric tons, and Indonesian production will account for 57.9% of world production. Malaysian production in 2020/21 rose +1.8% to 19.600 million metric tons, and Malaysian production will account for 26.1% of world production. Other smaller global producers include Thailand with 4.1% of world production, Columbia with 2.1%, and Nigeria with 1.7%.
Trade -The world's largest exporters of palm oil in 2020/21 were Indonesia, with a 56.4% share of world exports, and Malaysia, with a share of 33.7%. World palm oil imports in 2020/21 rose +3.8% to 49.718 million metric tons. The world's largest importers were India with a 16.9% share of world imports and the European Union with a 13.7% 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.