Palm oil prices closed lower in Malaysia on Thursday.

The August contract of palm oil, negotiated in Malaysian Derivatives Exchange (MDEX)Palm oil futures closed Thursday's session (2) with a moderate decrease of 0.66%, quoted at US$ 1,099.00/ton; the September contract fell 0.67%, to US$ 1,105.75/ton. For the week so far, futures have accumulated losses of 1.01% and 1.03%, respectively. In this trading session, prices were pressured by the fall in oil prices on the international market, a factor that reduces the competitiveness of biofuels produced from oilseeds, such as palm oil. The expectation of robust production in Malaysia also weighed on the market. According to analysts interviewed by the international press, the Malaysian harvest showed strong performance in June, raising supply prospects. Despite the scenario of higher production, at least one cargo inspection company indicated that Malaysian palm oil exports grew by about 12% in June compared to the previous month. The increase in shipments was driven by seasonal demand and the replenishment of stocks in the main importing markets, especially India and China.

This text was translated by machine from Brazilian Portuguese.