MDEX: Palm oil follows petroleum and closes higher this Wednesday.

The August contract of palm oil closed the session this Wednesday (29) with a slight increase of 0.38% in Malaysian Derivatives Exchange (MDEX)The price of palm oil, quoted at US$1,114.75/ton, rose 0.49% to US$1,132.0/ton. On the other hand, so far this week, futures have accumulated losses of 0.60% and 0.92%, respectively. In this trading session, prices were driven by higher oil prices in the international market, following the exchange of attacks between the United States, Iran, and Saudi Arabia in Iraq, reigniting market fears of a possible escalation of the conflict. Higher fuel prices in the international market make palm oil a less attractive option as a biodiesel feedstock. Furthermore, prices were also affected by the positive yield of palm oil in [unclear – possibly a specific region or market data]. Dalian Exchange (DCE), which closed with a moderate increase of 0.64%. On the other hand, soybean oil fell 0.22% in the Chinese index. Independent cargo inspection companies in Malaysia estimate that exports of palm oil and derivatives from the country advanced between 8.1% and 15.9% between July 1st and 25th. Limiting larger gains, the Malaysian ringgit appreciated 0.05% against the dollar, a factor that makes the commodity more expensive for buyers of foreign currencies.

This text was translated by machine from Brazilian Portuguese.