MDEX: Palm oil closes sharply higher on optimism for the B50 in Indonesia.

The July contract of palm oil closed Tuesday's session (16) with a slight drop of 0.37% in Malaysian Derivatives Exchange (MDEX), quoted at US$ 1,089.25/ton. The August contract fell 0.36%, to US$ 1,099.00/ton. 

In this trading session, commodity prices were boosted by investor optimism regarding the implementation of the increase in the biodiesel blend in diesel to 50% (B50) in Indonesia, which will take effect on July 1st. 

Furthermore, prices continue to be affected by projections from independent Malaysian freight companies, which estimate an increase in commodity exports between 9.6% and 23.8% from June 1st to 15th.

THE Malaysian ringgit The exchange rate weakened 0.42% against the dollar, a factor that makes palm oil cheaper for foreign buyers.

Palm oil closed 1.27% higher in Dalian Exchange (DCE)while the soybean oil It fell 0.78% in the Chinese index. 

However, gains were limited by the sharp drop in international oil prices following the agreement between the United States and the Iran which ends hostilities in Persian Gulf.

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

Notably, MDEX will not be operating tomorrow due to a national holiday in Malaysia. 

This text was translated by machine from Brazilian Portuguese.