MDEX: Palm oil closes lower on Wednesday.

The October contract of palm oil closed the session this Wednesday (2) with a moderate drop of 0.52% in Malaysian Derivatives Exchange (MDEX)The price for the Brazilian soybean futures contract fell 0.39% to US$1,194.75/ton. The November contract retreated 0.39% to US$1,226.00/ton. On the other hand, so far this week, futures have accumulated gains of 0.46% and 0.84%, respectively. 

In this trading session, commodity prices were pressured by the fall in oil prices on the international market, driven by the technical profit-taking movement practiced by the market.

Lower fossil fuel prices make palm oil a less attractive option as a feedstock for biodiesel.

Furthermore, palm oil recorded a 1.04% drop in… Dalian Exchange (DCE)On the other hand, soybean oil advanced 0.94% in the Chinese index.

Independent cargo inspection companies in Malaysia 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.