Palm oil rallies on concerns about reduced output

Palm oil prices rose Thursday and were expected by analysts to keep climbing next year as an El Nino weather pattern might disrupt supplies as demand grew.

Rainfall figures from parts of Indonesia are alarming, and suggest that output in the country, a leading producer of the commodity, may be affected through next year and into 2008, said Dorab Mistry, director at Godrej International, one of the biggest buyers of vegetable oils in India.
International Herald Tribune