Palm oil rises to highest in seven weeks

Palm oil advanced to the highest level in almost seven weeks as the rainy season and the threat of La Nina disrupt harvests in Indonesia and Malaysia, the largest growers, slowing production. The January-delivery contract gained 1.1 per cent to close at 3,045 ringgit ($975) per metric tonne on the Malaysia Derivatives Exchange, the highest level since September 21. Futures climbed 1.4 per cent last week, for a second weekly advance. The monsoon season, which started this month in Malaysia, may cause floods, the nation's Meteorological Department said in a report on October 28. The Pacific Ocean is in the early stages of a La Nina event that is expected to strengthen, Australia's Bureau of Meteorology said October 26. La Nina, a cooling of the Pacific Ocean, can increase rainfall in Malaysia and Indonesia and cause drier weather in Latin America and southern US.