A strong El Nio event is expected to occur in the second half of this year, reinforcing concerns over production cuts in forward months. Coupled with crude oil prices rebounding to high levels and providing strong underlying support, palm oil surged sharply in night trading. The MPOB March report for Malaysian palm oil is due to be released today, and market attention will focus on whether the expected inventory drawdown materializes. Domestic spot market transactions are light, with market participants mainly fulfilling previous contracts. In the short term, palm oil prices are expected to remain firm.