Palm oil closed higher in night trading. Externally, BMD's bullish structure remains intact, supported by seasonal production declines in producing regions, Indonesia's downward revision of production estimates due to drought (GAPKI estimates 58.50 million tonnes for 2026 and 56.80 million tonnes for 2027), and expectations of biodiesel policy support. However, the sharp month-on-month narrowing of Malaysia's August palm oil exports has capped gains. Domestically, supply outweighs demand: October arrivals have increased, port pressure persists, and inventories remain high. The deep inversion of the soybean oil-palm oil spread has dampened blending demand, and spot basis quotes are trending weakly. With bearish and bullish forces coexisting, futures are expected to trade at elevated levels with volatility, while spot basis quotes face downward pressure.