MDEX: Palm oil follows crude oil and closes lower on Monday.

The August contract of palm oil closed the session this Monday (27) with a moderate drop of 0.69% in Malaysian Derivatives Exchange (MDEX), quoted at US$ 1,113.75/ton. The September contract fell 0.83%, to US$ 1,133.0/ton. 

In this trading session, prices were pressured by the negative yield of palm oil in Dalian Exchange (DCE), which closed with a significant drop of 1.66%. Soybean oil fell 1.42% in the Chinese index.

Furthermore, prices were impacted by the rise in oil prices, driven by investors' reaction to the decision by the United States and Iran to suspend attacks over the weekend, increasing market hopes for a diplomatic solution to the conflict in the Persian Gulf.

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

Furthermore, the Malaysian ringgit appreciated by 0.12% against the dollar, a factor that makes the commodity more expensive for buyers of foreign currencies.

Limiting further losses, Malaysia's independent cargo inspection companies estimate that exports of palm oil and its derivatives increased between 8.1% and 15.9% between July 1st and 25th. 

This text was translated by machine from Brazilian Portuguese.