Palm oil price rallies to eight-year high

Output uncertainty:Some analysts are estimating that Malaysian output will be lowerthan previous estimates because of labour issues.

KUALA LUMPUR: Crude palm oil climbed to an eight-year high of RM3,262 per tonne on concern that a labour shortage in Malaysia will hamper output at a time when dry weather is threatening soybean crops in South America.

Expectations about a drop in palm and sunflower crops, lower soybean ending stockpiles in the US and a dry weather in Brazil are offering a bullish outlook for edible oil prices, said Sathia Varqa, owner of Palm Oil Analytics in Singapore.