MDEX: Palm oil follows the fall in oil prices and closes sharply lower.

The June contract of palm oil The session ended this Thursday (4) with a sharp drop of 1.17% on the Malaysian Derivatives Exchange (MDEX), quoted at US$ 1,123.25/ton. The July contract fell 1.31%, to US$ 1,130.25/t. For the week, the commodity futures accumulated losses of 1.01% and 1.09%, respectively. In this trading session, prices were pressured by the negative yield of palm oil in Dalian Exchange (DCE), which closed down 3.29%. Soybean oil fell 1.32% on the Chinese index. Prices for the commodity were also affected by the drop in oil prices, after Israel and Lebanon They announced a ceasefire agreement, raising market expectations for a possible breakthrough in negotiations for lasting peace in… Middle EastLower oil prices make palm oil a less attractive option as biodiesel raw materialBy limiting further losses, the Malaysian ringgit The exchange rate weakened 0.37% against the dollar, a factor that makes palm oil cheaper for foreign buyers.

This text was translated by machine from Brazilian Portuguese.