Here is the basic conversion for soybean oil futures and crude palm oil futures ( CPO ) in US Dollar term:
Soyoil Price per pound x 2204.622 = Soyoil Price per metric ton , or
CPO Price metric ton x 0.0004536 = CPO Price per pound.
For example, 50cents soyoil futures price with contract specification of 60,000 pounds is:
Soyoil Price per pound x 2204.622 = Soyoil Price per metric ton , or
CPO Price metric ton x 0.0004536 = CPO Price per pound.
For example, 50cents soyoil futures price with contract specification of 60,000 pounds is:
$0.50 x 2204.622 =$1,102.3 per metric ton as in USD
If CPO Futures price RM3,000 per metric ton and currency USD/MYR is at 3.00, then:
MYR3,000 / 3 = $1,000 per metric ton as in USD
Therefore, the price discrepancy (premium/discount) for soybean oil futures and crude palm oil futures in both exchanges (CME and BMD) can be easily followed up.