20/04/2011 (Bloomberg) - Palm oil production will increase in 2011, boosting tight supplies, researcher Oil World said in a report today.

World production of palm oil may rise 6.6 percent to 48.6 million metric tons, following an “unusually small” increase of 1.1 percent in 2010, the researcher said. Palm oil prices have declined 14 percent so far this year.

China will buy 550,000 tons of palm oil in April after the price declined and purchases will rise 7.7 percent in the marketing year that ends on Sept. 30, according to the report.