MDEX: Palm oil follows petroleum and closes higher.

The August contract of palm oil closed the session this Monday (13) with a slight increase of 0.20% in Malaysian Derivatives Exchange (MDEX), quoted at US$ 1,102.50/ton. The September contract advanced 0.29%, to US$ 1,112.50/ton. 

In this trading session, prices were driven by rising oil prices, amid a new escalation of hostilities in the Strait of Hormuz, following the collapse of the ceasefire agreement between the United States and Iran.

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

Furthermore, independent cargo inspectors in Malaysia estimated that exports of palm oil derivatives from the country increased between 1.6% and 5.1% during the period from July 1st to 10th. 

The Malaysian ringgit weakened 0.27% against the dollar, making palm oil cheaper for foreign buyers. 

Limiting further gains, prices were affected by the negative yield of palm oil in Dalian Exchange (DCE), which closed down 0.36%. Soybean oil ended completely flat on the Chinese index.

This text was translated by machine from Brazilian Portuguese.