Malaysian floods support rally in palm oil prices

Kuala Lumpur

YUSOF Mohd Isa's oil-palm plantation on the banks of Malaysia's Terpai river was submerged under 3.7 metres of water last month.

The 60-year-old farmer, who harvests fruit every two weeks, reaped less than half a metric ton once the waters receded, a quarter of the normal yield. Flooding in Malaysia, which produces a third of the world's crop, is exacerbating what is always a seasonal low in year-round production.

The floods were the worst in four decades and Malaysia's output in December plunged the most in eight years, Palm Oil Board data shows. In c…