MDEX: Palm oil closes sharply lower on Tuesday.

The June contract of palm oil closed Tuesday's session (12) with a sharp drop of 1.03% in Malaysian Derivatives Exchange (MDEX)The price for the futures contract was quoted at US$1,131.25/ton. The July contract fell 1.06% to US$1,139.00/ton. 

In this trading session, prices were pressured by the negative yield of palm oil in… Dalian Exchange (DCE), which closed down 1.35%. On the other hand, soybean oil advanced 0.16% in the Chinese index. 

The market is also continuing to react to the report from Malaysian Palm Oil Board (MPOB) about stocks, production and exports of the commodity in April.

According to the document, the volume of palm oil stored in Malaysia reached 2.31 million tons in April, a 1.71% increase compared to the previous month.

Already crude palm oil production The total in the country for the month was 1.63 million tons, an increase of 18.3% compared to March.

However, the country exported 1.3 million tons in April, a decrease of 14.3% compared to the previous month. 

Limiting further losses, commodity prices were affected by the rise in… oil prices, following a new impasse between the United States and the Iran in the peace negotiations in Middle East.

Higher oil prices make palm oil a more attractive option as biodiesel raw material. 

THE Malaysian ringgit The exchange rate weakened 0.31% against the dollar, a factor that makes palm oil cheaper for foreign buyers.

Furthermore, the Malaysian cargo inspection company, Intertek Testing Services, projected that exports of palm oil and its derivatives from the country advanced 8.5% between May 1st and 10th. However, the AmSpec Agri Malaysia It is estimated that shipments fell 10.8% compared to the same period of the previous month. 

This text was translated by machine from Brazilian Portuguese.