This year, the strongest El Nio in 140 years and its associated global heatwaves are expected to impact major palm oil-producing countries, potentially leading to drought. Palm oil output is likely to decline significantly, providing support to palm oil futures. Domestic import margins remain deeply inverted, and vessel purchases have been scarce recently. Attention should be paid to domestic arrivals and inventory levels. In the short term, palm oil is expected to trade in a range-bound manner.