Malaysian palm oil futures surged by about 2%, surpassing MYR 4,460 per tonne, marking a second consecutive day of gains. This increase followed the latest industry data revealing a third consecutive month of inventory declines, which stood at 1.71 million metric tons at the end of December. Additionally, palm oil production dropped by 8.3% in December compared to November, totaling 1.49 million tons. The price recovery, which had previously reached its lowest in over 11 weeks, was driven by optimism regarding stronger demand from China ahead of the Lunar New Year. Trade data from China showed that exports increased for the ninth consecutive month in December, and imports unexpectedly rose, further boosting market sentiment. However, the upward trend was limited by lower export estimates from cargo surveyors, indicating a decline of 21.4% to 26.8% for the period from January 1–10. Traders remained cautious ahead of India's December import data, expected later this week. Moreover, there were concerns about sluggish overall demand in the first quarter of 2025, as rival edible oils continued to offer a price advantage over palm oil.