Palm oil advances

KUALA LUMPUR, Malaysia - Palm oil advanced to the highest level in more than a week as lower prices lured some importers, and as rival soybean oil climbed on concerns that rain may threaten oilseeds ready for harvest in Brazil.

The most-active June-delivery contract gained as much as 1.3 percent to 3,489 ringgit ($1,148) a ton on Monday, the highest level since March 10, before closing the morning session at 3,457 ringgit. Futures rebounded 2.4 percent last week after plunging 8.1 percent in the week ended March 11.

Palm oil has fallen 13 percent from a 35-month high of 3,967 ringgit on Feb 10 on speculation of an increase in output this year in Indonesia and Malaysia as yields improve. World production of palm oil may increase 6.6 percent to 48.7 million tons in 2011, according to Oil World.