KUALA LUMPUR (Dec 12): Palm oil futures advanced toward the highest level since 2017, as prospects for slowing production and increased biodiesel demand outweighed concern over lower demand from India, the biggest importer.

Malaysian production fell 14% in November from the previous month, more than expected, while Indonesia is introducing its B30 biodiesel program in January, increasing it to B40 toward the end of the year. The sharp gains in prices have blunted demand from India, with imports probably dropping to a five-month low in November, according to a Bloomberg survey.