Palm oil headed for its highest close since early August on concerns about supplies in the world’s top growers and expectations of a recovery in demand. A dealer says that Indonesia plans to blend more palm-based biofuels in diesel, while production in Malaysia has risen only marginally this month. According to the Malaysian Palm Oil Association’s estimate, output rose just 4% from a month earlier during Aug. 1-20, which is not very encouraging, he said. On the other hand, India and China are seeing increasing purchases. Chinese importers have bought some cargoes for December delivery, while Indians are also active in the market, he said.
