Malaysian palm oil futures bounce

KUALA LUMPUR, Jan 15 (Reuters): Malaysian palm oil futures rose on Thursday after a recent climb in crude oil, with prices underpinned by concerns over a squeeze in the tropical oil's supply as the No.2 grower braces for monsoon rains over the Borneo region.

Growers in Peninsular Malaysia are facing the aftermath of the worst monsoon floods in decades which destroyed palm oil transportation and processing infrastructure in the worst-hit states, making worse the weakness in palm yields already low due to seasonal reasons.

Malaysia's meteorological department indicates that the monsoon has now shifted to Borneo, bringing rains to top palm-growing states Sabah and Sarawak.

The department warned of heavy rains over Sarawak that are expected to last until Saturday, while thunderstorms and strong winds are seen hitting Sabah late Thursday.        

"Prices are generally being supported because of tightness in nearby oil," said Chandran Sinnasamy, a trader at LT International Futures in Malaysia.