KUALA LUMPUR, Dec 24 (Reuters): Malaysian palm oil futures rose to their highest in nearly a month on Wednesday as monsoon rains pounded the second-largest grower, leading to severe flooding in parts of the country which traders say has affected harvesting and crushing of palm fruit.
Local media reported that the second wave of floods across six states sent nearly 60,000 people to evacuation centres on Wednesday morning. Dozens of tourists were also marooned after riverbanks in the east coast state of Pahang overflowed.
"The market is seeing short covering after the recent output data and flood vagaries," said Lingam Supramaniam, director at Malaysia-based commodities firm Pelindung Bestari.
"The rainfall is seen delaying harvesting and certain mills in the east coast are down with flood waters," he added. "Prices will remain defensive until 1Q 2015."
Pahang is the largest state in Peninsular Malaysia and on its own accounts for more than 15 per cent of the country's total crude palm oil supply.
The benchmark March contract on the Bursa Malaysia Derivatives Exchange had edged up 0.6 per cent to 2,223 ringgit ($636) per tonne by the midday break in its sixth straight day of gains, with prices trading at their highest since Nov. 27.
Malaysian palm oil futures rises
FE Team | Published: December 25, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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