MDEX: Palm oil follows crude oil and closes sharply lower.

The July contract of palm oil closed the session this Friday (12) with a sharp drop of 1.31% in Malaysian Derivatives Exchange (MDEX)The price for the Brazilian crude oil futures contract fell 1.36% to US$1,103.00/ton, quoted at US$1,193.25/ton. The August contract fell 1.36% to US$1,103.00/ton. For the week, futures accumulated losses of 2.67% and 2.41%, respectively. 

In this trading session, prices followed the negative performance of palm oil in Dalian Exchange (DCE), which registered a decrease of 0.48%. On the other hand, soybean oil stabilized with an upward trend (+0.04%) in the Chinese index. 

Meanwhile, prices continue to be impacted by oil prices on the international market. The value of this energy commodity has been pressured by recent progress in peace negotiations between the United States and Iran. 

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

The Malaysian ringgit appreciated 0.22% against the dollar, a factor that makes palm oil more expensive for foreign buyers.

Limiting further losses, Malaysian independent freight companies estimate that the country's palm oil exports increased between 3.5% and 4.9% during June 1st to 10th.

This text was translated by machine from Brazilian Portuguese.