Core Viewpoint - Palm oil leads the oilseed sector with a price increase of over 2% in the main contract, driven by seasonal production cuts overseas and domestic pre-holiday stocking for the Spring Festival, indicating a short-term bullish outlook for palm oil [3][7]. Group 1: Policy and Market Dynamics - Oilseed policies are centered around Indonesia and the United States, with Indonesia canceling the B50 biodiesel plan and extending the B40 plan until 2026, leading to reduced demand expectations [3][7]. - The U.S. biodiesel policy is set to be announced soon, which is expected to boost vegetable oil demand, with plans to finalize the biodiesel blending obligation of 5.2 to 5.6 billion gallons by March 2026, while also abandoning the RINs import reduction rule [3][7]. Group 2: Production and Export Trends - Seasonal production cuts have begun, with the Malaysian Palm Oil Association (MPOA) estimating a 14.43% month-on-month decrease in palm oil production from January 1 to 20 [3][7]. - High-frequency data indicates a month-on-month increase in palm oil exports of 7.97% to 9.97% from January 1 to 25 [3][7]. Group 3: Domestic Market Conditions - Domestic pre-holiday stocking and the release of spot demand are pushing oilseeds into a destocking phase, contributing to a collective rise in domestic oilseed futures [3][7]. - Palm oil has reached a three-month high, soybean oil a five-month high, and rapeseed oil a six-week high in the domestic market [3][7].