Palm oil hits five-month high on Russia's wheat ban

Palm oil reached the highest level in almost five months after a ban on grain exports by the drought- hit Russia sent prices of soybeans and corn soaring. October-delivery futures jumped as much as 2.9 per cent to 2,695 ringgit ($857) a metric tonne on the Malaysia Derivatives Exchange, the highest level since March 11. Prices have gained 6.4 per cent this week for the fourth straight weekly advance.

“This year belongs to grains and oilseeds and oils will be no exemption,” Harish Galipelli, vice president at JRG Wealth Management Ltd, which advises traders, said by telephone from Hyderabad. “Weather disruption is going to set the market on fire for some time to come.” Corn futures surged to 13-month high and soybeans extended a rally to the highest price since January after Russia halted grain exports on Thursday. Corn jumped as much as 5.8 per cent, soybeans gained as much as 2.4 per cent, and wheat futures soared to a 23-month high on the Chicago Board of Trade on Thursday.