MDEX: Palm oil closes slightly lower on Monday.

The July contract of palm oil closed the session this Monday (15) with a slight drop of 0.37% in Malaysian Derivatives Exchange (MDEX), quoted at US$ 1,089.25/ton. The August contract fell 0.36%, to US$ 1,099.00/ton. 

In this trading session, prices followed the significant drop in oil prices on the international market, after authorities… United States and of Iran They claim that an initial agreement has been reached to end hostilities in Persian Gulf and resume traffic through Strait of Hormuz.

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

The drop in energy commodity prices also impacted palm oil. Dalian Exchange (DCE), which registered a decrease of 1.43%, while soybean oil retreated 0.29% in the Chinese index. 

Limiting further losses, Malaysian independent freight companies estimate that the country's palm oil exports increased between 9.6% and 23.8% during June 1st to 15th.

This text was translated by machine from Brazilian Portuguese.