MDEX: Palm oil closes sharply lower on Friday.

The August contract of palm oil closed the session this Friday (10) with a sharp drop of 1.59% in Malaysian Derivatives Exchange (MDEX)The price for the Brazilian crude oil futures contract was quoted at US$1,100.25/ton. The September contract fell 1.60% to US$1,109.25/ton. On the other hand, for the week, the contracts accumulated gains of 0.46% and 0.77%, respectively. 

In this trading session, prices were pressured by the positive yield of palm oil in Dalian Exchange (DCE), which closed down 1.76%. Soybean oil fell 0.93% on the Chinese index.

Furthermore, prices were impacted by the decline in oil prices the previous day (9), amid the technical movement of profit-taking, practiced by investors after a strong advance in fuel prices this week. 

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

This text was translated by machine from Brazilian Portuguese.