Affected by the MPOA report showing a sharp increase in production and the pre-holiday atmosphere, palm oil futures fell rapidly. The soybean oil-palm oil spot price spread is deeply inverted at about 390 yuan/tonne, dampening palm oil substitution consumption. On the inventory side, as of September 25, national commercial palm oil inventories stood at 968,400 tonnes, up 33,400 tonnes from 935,000 tonnes last week, an increase of 3.57%, ending the previous consecutive destocking trend and bringing inventory-building pressure back. Current inventories are still up about 60% year on year, with obvious high-level pressure. With faster import arrivals and weak exports, the short-term palm oil supply-demand pattern is expected to remain weak, and the basis is expected to stay weak. Attention should be paid to the implementation of production-reduction policies in origin areas and changes in import profitability.