Yesterday, palm oil, buoyed by its strong financial attributes, followed the overall bullish sentiment in the vegetable oil complex and moved higher in the afternoon session. The rebound was mainly driven by CBOT soybean strength and firmer crude oil and competing edible oils. However, the fundamental pressure on the product itself remains significant. Overseas producing regions are in a production expansion cycle, with Malaysia's June crude palm oil output surging month-on-month and inventories rising in tandem. Domestic palm oil stocks remain near three-year highs, and with the soybean oil-palm oil price spread inverted, substitution effects have weakened. End-users are purchasing only for essential needs, and market liquidity remains thin. Overall, the rebound lacks sustained momentum, with futures likely to fluctuate in a low range in the short term and spot basis expected to remain weakly stable.