MDEX: Palm oil follows the surge in oil prices and closes higher.

The May contract for palm oil ended Thursday's session (16) with a slight increase of 0.31% in Malaysian Derivatives Exchange (MDEX) The price for the futures contract, quoted at US$ 1,123.75/ton, stabilized with an upward trend (+0.02%), at US$ 1,132.00/ton. On the other hand, both contracts have accumulated losses so far this week, of 0.86% and 0.96%, respectively.

In this trading session, commodity prices were driven by a new surge in oil prices, amid market uncertainty regarding the ceasefire between the United States and the Iransince the Strait of Hormuz remains partially closed. 

Higher fuel prices make palm oil a more attractive option as biodiesel raw material.

Furthermore, palm oil closed 0.32% higher in Dalian Exchange (DCE)Meanwhile, soybean oil advanced 0.57% in the Chinese index.

THE Malaysian ringworm stabilized on a downward trend (-0.05%) compared to dollarThis factor makes the commodity cheaper for foreign buyers. 

On the other hand, weak exports limited further gains. According to estimates from Malaysian cargo inspectors, exports of palm oil products between April 1st and 15th fell between 34.2% and 34.7% compared to the same period of the previous month.

This text was translated by machine from Brazilian Portuguese.