The May contract for palm oil closed the session this Friday (17) with a sharp drop of 1.33% in Malaysian Derivatives Exchange (MDEX)The price of soybean oil fell to US$1,108.75/ton. The June contract retreated 1.24%, to US$1,118.00/ton. Both assets accumulated losses for the week, of 2.18% and 2.19%, respectively. In this trading session, prices were impacted by the weakness of oil in the international market, amid increased expectations of a possible agreement between the United States and Iran. The scenario of reduced geopolitical risks was driven by the 10-day truce between Israel and Lebanon, as well as the expectation of new diplomatic negotiations over the weekend. The 0.05% appreciation of the Malaysian ringgit against the dollar also pressured the assets, making the commodity more expensive for importers. Losses were limited by the appreciation of equivalent assets on the Dalian Commodity Exchange, with a 0.46% increase for the soybean oil contract and a 1.26% increase for the palm oil contract. In the medium term, the market is monitoring the progress of biofuel policies in Asia. According to… Malaysian Palm Oil CouncilConsumption of biodiesel based on this product is expected to grow by more than 300,000 tons per year, driven by increased blending requirements in Malaysia and Indonesia.
This text was translated by machine from Brazilian Portuguese.