International crude oil prices are weakening, and the economic foundation for palm oil-producing countries to implement biofuel policies is being undermined. Thailand's policy of restricting palm oil exports has already shown adverse effects, reflecting the possibility that expectations of tightening future palm oil supply may diminish as crude oil prices weaken. Palm oil futures prices have fallen sharply. Domestic spot market inventories remain at high levels, demand is sluggish, and basis prices stay low. In the short term, palm oil prices are expected to fluctuate with a weaker trend.