MDEX: Palm oil continues to be influenced by oil prices and closes higher.

The August contract of palm oil closed Tuesday's session (14) with a moderate increase of 0.77% in Malaysian Derivatives Exchange (MDEX), quoted at US$ 1,111.0/ton. The September contract advanced 0.83%, to US$ 1,121.75/ton. 

In this trading session, prices continued to be impacted by the rise in oil prices on the international market, amid a new escalation of hostilities between the United States and Iran. The day before (13), US President Donald Trump announced the resumption of the naval blockade against the Persian country, which rekindled market fears of a possible extension of the conflict. 

Higher fuel prices make palm oil a more attractive option as a feedstock for biodiesel.

Furthermore, prices were also affected by the positive yield of palm oil in Dalian Exchange (DCE), which closed 0.95% higher. Soybean oil advanced 0.4% on the Chinese index. 

Furthermore, the Malaysian ringgit weakened 0.2% against the dollar, making palm oil cheaper for foreign buyers. 

This text was translated by machine from Brazilian Portuguese.