MDEX: Palm oil closes higher on Tuesday.

The October contract of palm oil closed Tuesday's session (1st) with a moderate increase of 0.99% in Malaysian Derivatives Exchange (MDEX)The price for the crude oil futures contract was quoted at US$1,201.00/ton. The November contract advanced 1.23%, to US$1,230.75/ton. 

In this trading session, commodity prices were driven up by rising oil prices on the international market, amid a new escalation of tensions in the Middle East, after the United States and Iran exchanged attacks in the region.

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

Furthermore, palm oil registered an increase of 0.55% in Dalian Exchange (DCE), while soybean oil advanced 0.94%.

Limiting further gains, Malaysian independent cargo inspection companies estimated that exports of palm oil products in August fell between 6.5% and 14.9%.

This text was translated by machine from Brazilian Portuguese.