Fear that the rainy season and threat of La Nina will disrupt palm oil harvest in Indonesia and Malaysia, the largest growers, slowing down production pushes it prices up.
Bloomberg reports 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.
Malaysia Meteorological Department said in a report on October 28 predicted the monsoon season, which started this month, may cause floods in many parts of the country.
While another weather report from Australia’s Bureau of Meteorology said October 26, the Pacific Ocean is in the early stages of a La Nina event that is expected to strengthen.
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.