The May contract of palm oil closed the session this Wednesday (8) with a significant drop of 2.41% in Malaysian Derivatives Exchange (MDEX)The price for the Brazilian crude oil futures contract fell 2.52% to US$1,145.25/ton. The June contract declined 2.52% to US$1,152.50/ton. So far this week, the commodity has accumulated losses of 3.78% and 3.96%, respectively.
In this trading session, commodity prices were pressured by the significant drop in… oil prices in the international market, which returned to trading below US$100 a barrel, after the United States and the Iran they announced a ceasefire agreement and the reopening of Strait of Hormuz for two weeks.
Lower oil prices make palm oil a less attractive option as a feedstock for biodiesel.
Fuel prices also affected palm oil yields in Dalian Exchange (DCE), which closed down 4.36%, while soybean oil fell 3.07%.
THE Malaysian ringworm strengthened 3.07% compared to dollarThis factor makes palm oil more expensive for foreign buyers.
On the radar, the market awaits the release of official supply and demand data for the commodity. Malaysia, who will be informed by Malaysian Palm Oil Board (MPOB) April 10th.
This text was translated by machine from Brazilian Portuguese.