Fundamentals in Malaysia have strengthened, coupled with positive expectations for U.S. biodiesel policies, providing solid support at the bottom for palm oil futures. Nevertheless, Malaysia's high inventory levels have also created significant selling pressure. Overseas suppliers are maintaining low offers, with negotiation margins widening to USD 1015. Domestic actual import parity remains around flat, leading to increased vessel purchase. However, ample near-term supply in the domestic market is limiting futures gains. In the short term, palm oil is expected to trade within a consolidating range.