MDEX: Palm oil closes sharply higher on Tuesday.

September's contract palm oil closed Tuesday's session (4) with a strong increase of 1.32% in Malaysian Derivatives Exchange (MDEX)The price for the October contract rose 1.39% to US$1,146.25/ton. The October contract advanced 1.39% to US$1,146.25/ton. 

In this trading session, prices were boosted by positive palm oil yields. Dalian Exchange (DCE), which closed slightly higher at 0.23%, while soybean oil advanced 0.32% in the Chinese index.

Furthermore, Indonesia exported 2.4 million tons of crude and refined palm oil in June of this year, a 12.6% drop compared to the same month last year, according to data released yesterday (3) by the government's statistics department. In revenue, shipments reached US$ 2.7 billion.

The Malaysian ringgit depreciated by 0.02% against the dollar, a factor that makes the commodity cheaper for buyers of foreign currencies.

Limiting further gains, prices continue to be affected by the volatility of oil prices in the international market. Fuel prices fell after US President Donald Trump suspended new bombings against Iran, aiming 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. 

A Reuters survey indicates that Malaysia's exports of the commodity rose 14.8% in July, with production increasing by 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.

This text was translated by machine from Brazilian Portuguese.