Driven by the upward momentum of the competitive palm oil market, soybean oil futures broke through the previous high during night trading. However, on the spot side, downstream buyers showed reluctance to accept high prices amid elevated futures levels. The pre-holiday stocking demand for the Mid-Autumn Festival and National Day fell short of expectations, with market transactions failing to pick up and overall demand remaining tepid. Meanwhile, supply side conditions stayed relatively loose, with crushers continuing to build inventories. National commercial soybean oil stocks reached 1,459,500 tonnes (up 30,100 tonnes, or 2.11% month-on-month), and inventories are expected to remain at elevated levels, putting short-term pressure on spot basis quotes. Going forward, close attention should be paid to weather changes in U.S. soybean-growing regions, the progress of biofuel policy implementation, and adjustments in crusher operating rates.