Edible Oil Market Update

KLC: Opened with gains supported by the global market. Mid-day trade also maintained an upward trend. Active buying by funds at lower levels has helped KLC recover. Fundamentals remain weak, but buying at lower levels is supporting the recovery. Palm oil stocks in Indonesia increased at the end of January.

CBOT: Positive news on biofuel led to a ₹3 per kg rise in CBOT soybean oil last night. The Trump administration has urged oil and biofuel producers to reach a deal on a new biofuel policy. Argentine soybean oil is also showing recovery, supported by the strength in CBOT soybean oil.

Strength in global markets will keep the upward trend in the domestic edible oil market. NAFED has suspended soybean auctions until further notice, strengthening soybean prices. The edible oil market is expected to remain strong today as well. Kandla soybean oil is at the ₹1300 level, while palm oil could test the ₹1390–₹1400 range in the long term.

Mustard oil is performing the best among edible oils due to the lower supply of other edible oils. Reduced mustard production is expected to push prices higher.