MDEX: Palm oil closes sharply higher on Tuesday.

The June contract of palm oil closed Tuesday's session (5) with a strong increase of 1.79% in Malaysian Derivatives Exchange (MDEX)The price for the crude oil futures contract was quoted at US$1,181.00/ton. The June contract advanced 1.69%, to US$1,188.25/ton. 

In this trading session, commodity prices were boosted by the statement from the Deputy Prime Minister of Malaysia, Ahmad Zahid Hamidi, that the country will begin producing biodiesel with 15% palm oil in June. 

According to the authority, the increase in the mixture's content will be gradual, focusing on reaching 20% and approaching 50% in the next two to three years. 

Furthermore, the Indonesia's National Institute of Statistics It projected that the country exported 5.85 million tons of crude and refined palm oil in the first quarter of 2026, a 9.3% increase compared to the previous year. 

By limiting larger gains, the India imported 505,000 tons of palm oil in April., a 27% drop compared to the previous month and the lowest volume recorded in a year, according to information from Reuters released the day before (4).

THE Malaysian ringgit strengthened 0.43% against dollarThis factor makes the commodity more expensive for foreign buyers. 

This text was translated by machine from Brazilian Portuguese.