Palm oil prices are trending stronger. Dry weather in Indonesia's production areas has pushed far-month palm oil contracts higher, with the DCE P2705 contract showing particularly notable gains. In the spot market, basis levels for palm oil remained broadly stable, with most regions adopting a wait-and-see attitude and transaction volumes moderate. Three new September purchase contracts were concluded yesterday, and current September arbitrage profits are attractive. Going forward, attention should be paid to shipment schedules and changes in import margins. On the far-month front, Indonesia's B50 policy, Malaysia's proposed increase in the biodiesel blending ratio, and the El Nio-driven production cut expectations continue to provide underlying support for far-month contracts. The near-term trend is expected to maintain a "near-weak, far-strong" pattern, with prices likely to trade in a range-bound manner.