Malaysian palm oil futures dropped by about 1%, falling below MYR 4,400 per tonne for the second consecutive session. This decline follows a significant 41% month-on-month drop in imports from India, the largest buyer, in December, hitting a nine-month low. The decrease was driven by lower prices for competing edible oils. Concerns over weak demand in the first quarter also grew, partly due to Brazil's large soybean harvest, which increased global competition. Additionally, cargo surveyors noted that Malaysian palm oil shipments could shrink by 21.4% to 26.8% in the first ten days of January compared to the previous month. Market caution persisted ahead of key economic data from China, including Q4 GDP, industrial output, and retail sales figures. However, the price decline was limited by a third consecutive monthly rise in palm oil stocks, which reached 1.71 million tonnes in December, even as production dropped by 8.3% to 1.49 million tonnes. Meanwhile, US soybean production and stocks were reported lower last week due to dry weather, while China’s soybean oil and meal futures saw their biggest single-day rise since 2023 earlier this week.