MDEX: Palm oil closes sharply higher on Monday.

The May contract for palm oil closed Monday's session (20) with a strong increase of 1.62% in Malaysian Derivatives Exchange (MDEX) The price for the futures contract was quoted at US$1,126.75/ton. The June contract advanced 1.50%, to US$1,134.75/ton. 

In this trading session, commodity prices were driven up by the new high in oil prices, amid market fears about the ceasefire between the United States and IranFollowing Washington's seizure of an Iranian cargo ship and Tehran's vow to retaliate against the US move.

Higher fuel prices make palm oil a more attractive option as biodiesel raw material.

Furthermore, prices on MDEX were affected by the appreciation of equivalent assets in Dalian Exchange (DCE), with a 0.17% increase for the soybean oil contract and a 0.39% increase for palm oil.

THE Malaysian ringworm stabilized on a downward trend (-0.03%) compared to dollarThis factor makes the commodity cheaper for foreign buyers. 

This text was translated by machine from Brazilian Portuguese.