On the bullish side, Indonesia's B50 biodiesel policy is set to officially launch on July 1, with the Energy Minister confirming that the program will proceed as scheduled, sustaining expectations for biofuel demand. Multiple agencies have confirmed that El Nio has formed and is of strong intensity, with Australia's Bureau of Meteorology warning that it could become one of the strongest in 70 years, heightening expectations for lower production in the forward months and attracting long positions (last week, Malaysian palm oil rallied 0.9% week-on-week to 4,578 ringgit/tonne, leading the gains in the vegetable oil sector, buoyed by improving export data and policy expectations). However, near-term spot pressure remains unabated. MPOB data showed that end-May stocks stood at a high 2.428 million tons, compared with 1.983 million tonnes a year earlier.