MDEX: Palm oil closes sharply lower, following a drop in international oil prices.

The April contract of palm oil closed the session this Wednesday (25) with a sharp drop of 1.41% in Malaysian Derivatives Exchange (MDEX)The price for the May contract fell 1.15% to US$1,135.00/ton. For the week so far, the contracts have accumulated losses of 3.61% and 3.34%, respectively. 

In this trading session, palm oil prices followed the commodity's negative performance in… Dalian Exchange (DCE), which recorded a loss of 1.74%, while soybean oil fell 0.67%.

Furthermore, prices were impacted by the drop in oil prices on the international market, amid efforts by United States in negotiating with the Iran to end the conflict in Middle EastLower fuel prices make palm oil a more attractive option as a feedstock for biodiesel. 

By limiting further losses, the Malaysian ringworm weakened 0.23% compared to dollarThis factor makes palm oil cheaper for foreign buyers. 

Furthermore, Malaysian cargo inspection companies estimated that exports of the commodity increased between 38.4% and 50.6% between March 1st and 25th.

This text was translated by machine from Brazilian Portuguese.