The fundamentals for palm oil are relatively weak, with production in April increasing significantly on a month-on-month basis. Nevertheless, Middle Eastern geopolitical risks and biofuel policies in various countries continue to provide a long-term bullish narrative for vegetable oils. Additionally, frequent contract washing (cancellations of import arrangements) in China recently has raised price expectations. As a result, the bottom support for palm oil futures remains strong, with prices rebounding from lows during night trading. In the spot market, the basis has mostly rolled over to forward months across most regions, and demand is showing initial signs of improvement. In the short term, palm oil prices are expected to trade within a range.