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

The August contract of palm oil closed the session this Wednesday (8) with a slight increase of 0.41% in Malaysian Derivatives Exchange (MDEX)The price for the Brazilian crude oil futures contract rose 1.20% to US$1,105.00/ton. The September contract advanced 1.20% to US$1,122.00/ton. So far this week, the contracts have accumulated gains of 1.31% and 2.44%, respectively. 

In this trading session, prices were boosted by positive palm oil yields. Dalian Exchange (DCE), which closed 0.38% higher. Soybean oil advanced 0.61% on the Chinese index.

Furthermore, prices were impacted by the rise in oil prices in the international market. The President of the United States, Donald Trump, stated that the memorandum of understanding signed with Iran, which foresaw an end to the conflict between the parties, is "closed," adding that dialogue with Tehran will not continue. 

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

Furthermore, the Malaysian ringgit depreciated by 0.17% against the dollar, a factor that makes palm oil cheaper for foreign buyers.

This text was translated by machine from Brazilian Portuguese.