MDEX: Palm oil closes lower on Monday.

September's contract palm oil closed the session this Monday (3) with a moderate drop of 0.64% in Malaysian Derivatives Exchange (MDEX)The price for the October contract fell 0.62% to US$1,130.5/ton. The October contract declined 0.62% to US$1,130.5/ton. 

In this trading session, prices were affected by the negative yield of palm oil in… Dalian Exchange (DCE), which closed with a moderate drop of 0.88%. Soybean oil fell 0.11% in the Chinese index.

Furthermore, prices were impacted by the fall in international oil prices after US President Donald Trump suspended further bombings against Iran in order to advance negotiations for the complete reopening of the Strait of Hormuz.

Lower fuel prices on the international market make palm oil a less attractive option as a feedstock for biodiesel. 

Limiting further losses, a Reuters survey indicates that Malaysian exports of the commodity rose 14.8% in July, with production growing 7.4%. If confirmed, the country's stockpiles will reach their highest level in five months.

THE Malaysian Palm Oil Board (MPOB) The official data must be released on August 10th.

The Malaysian ringgit depreciated 0.24% against the dollar, a factor that makes the commodity cheaper for buyers of foreign currencies.

This text was translated by machine from Brazilian Portuguese.