Palm oil closes higher on MDEX this Wednesday.

The May contract of palm oil closed the session this Wednesday (15) with a slight increase of 0.22% in Malaysian Derivatives Exchange (MDEX)The price of palm oil, quoted at US$1,120.25/ton, advanced 0.20% to US$1,131.75/ton. On the other hand, both contracts accumulated losses in the partial week, of 1.17% and 0.98%, respectively. In this trading session, prices were supported by the news that Malaysia intends to increase its mandatory biodiesel blend from B10 to B15, starting the transition with an intermediate stage of B12. The measure is seen by the market as a potential driver of increased domestic demand for palm oil, the main raw material of the Malaysian biodiesel program. Another supporting factor was the slight depreciation of 0.03% of the Malaysian ringgit against the dollar, which makes the commodity marginally cheaper for international buyers. On the other hand, weak exports limited larger gains. According to estimates from cargo inspectors, Malaysian palm oil product exports fell between April 1st and 15th by 34.2% to 34.7% compared to the same period of the previous month.

This text was translated by machine from Brazilian Portuguese.