Palm oil hits high
KUALA LUMPUR, Malaysia - Palm oil advanced to the highest level in almost three years on concern that output from Malaysia, the second-largest producer, may decline after wet weather hurt crops, compounding a seasonal drop in production.
The April-delivery contract on the Malaysia Derivatives Exchange climbed as much as 1 percent to 3,929 ringgit ($1,295) a ton, the highest price since March 2008, and was at 3,908 ringgit at 4:21 pm in Kuala Lumpur on Wednesday.
Prices of palm oil have jumped as demand threatens to outstrip supply.
"The peak production period is off already, it's finished, so it should be on the downward trend in terms of production," Hoe Lee Leng, an analyst at RHB Research Institute Sdn, said on Wednesday.
Bloomberg News
(China Daily 02/10/2011 page17)
