MDEX: Palm oil closes moderately low.

The June contract of palm oil closed the session this Monday (8) with a moderate drop of 0.76% in Malaysian Derivatives Exchange (MDEX)The price for the futures contract was quoted at US$1,114.75/ton. The July contract fell 0.60% to US$1,123.50/ton. 

In this trading session, prices were pressured by the negative yield of palm oil in… Dalian Exchange (DCE), which closed down 0.49%. Soybean oil fell 0.82% on the Chinese index.

Furthermore, the market remains uncertain regarding the mandatory 50% blending of palm oil-based biodiesel in Indonesia (B50). The government has yet to provide further details on when the new mandate will be implemented.

By limiting further losses, the Malaysian ringgit The exchange rate weakened 1.12% against the dollar, a factor that makes palm oil cheaper for foreign buyers.

On the radar, the Malaysian Palm Oil Board (MPOB) will report, on the 10th of next month, the monthly supply and demand data for the commodity.

This text was translated by machine from Brazilian Portuguese.