Palm Oil Extends Rally to Eight-Month High on Supply Concerns

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Palm climbed to the highest level in eight months on speculation that output in Malaysia, the world’s second-largest producer, will drop starting next month because of growing cycles and the beginning of the monsoon season.

The contract for delivery in January advanced 1.8 percent to 2,543 ringgit ($807) a metric ton on the Bursa Malaysia Derivatives, the highest level at close for most-active futures since Feb. 20. Palm for physical delivery in November was at 2,540 ringgit, data compiled by Bloomberg show.