Palm oil and rubber prices rise as floods in M'sia, Thailand hit supplies

Kuala Lumpur

PALM oil and rubber prices advanced as flooding in Malaysia and Thailand disrupted supplies from South-east Asia, and forecasters said that further heavy rain over the next few days will probably exacerbate the situation.

Palm oil for March delivery jumped 1.6 per cent to RM2,286 (S$865) a tonne on Bursa Malaysia Derivatives, the highest closing price for a most-active contract since Nov 4. The benchmark price for the edible oil rose for an eighth day, the longest rally since 2010. Rubber climbed for a third day on the Tokyo Commodity Exchange and traded near a four-month high.