MDEX: Palm oil closes sharply higher, in line with rising oil prices.

The April contract of palm oil closed the session this Thursday (19) with a strong increase of 1.17% in Malaysian Derivatives Exchange (MDEX)The price for the crude oil futures contract rose 1.32% to US$1,164.25/ton. The May contract advanced 1.32% to US$1,174.25/ton. So far this week, futures for the commodity have accumulated gains of 0.98% and 1.12%, respectively. 

In this trading session, commodity prices were driven by a significant increase in… oil market prices internationally, especially in the most traded contract in Intercontinental Exchange (ICE), which surpassed the level of US$ 100 per barrel. 

Higher fuel prices make palm oil an attractive option as a feedstock for biodiesel. 

According to Reuters, you Malaysian fertilizer manufacturers They are suspending new orders amid a shortage of raw materials due to the war in the Middle East, threatening the production of palm oil and other commodities. 

Furthermore, the Malaysian ringworm weakened 0.59% compared to dollarThis factor makes palm oil cheaper for foreign buyers. 

Limiting further gains, palm oil registered a 0.43% drop in… Dalian Exchange (DCE)Meanwhile, soybean oil advanced 0.12% in the Chinese index. 

On the radar, tomorrow (20) MDEX and other markets will be closed due to the holiday. Hari Raya Aidilfitri, which marks the end of the Ramadan fastNegotiations will only resume on next Tuesday (24).

This text was translated by machine from Brazilian Portuguese.