Edible Oil Market Report

Date: April 22, 2025

1. Malaysian Market (KLC – Bursa Malaysia)

• Opening: KLC opened with slight gains but lacks fundamental support.

• Trend:

• Palm and soybean oil on China’s DCE are trading nearly flat.

• KLC (July) is trading below the 4000 support level, signaling weakness.

• This could push prices toward the next support zone at 3500–3600.

2. Chicago Board of Trade (CBOT – Soybean Oil)

• Recent Performance: Showed some recovery last night.

• Volatility: Both morning and evening sessions have seen high volatility.

• Key Influencing Factors:

• Trump’s tariff policy

• Soybean harvesting in Argentina

• Improving palm oil production in Malaysia

• Impact: Global markets remain under pressure due to these combined factors.

3. Indian Market

• Demand Situation: Weak demand continues due to rising temperatures in North and Central India.

• Price Trends:

• Soybean oil in Kandla is hovering near the immediate support of 1215–1220 INR per 10 kg.

• A breakdown below this level could push prices toward 1180–1200.

• Other Oils:

• Sunflower oil prices remain elevated due to tight supply.

4. Strategic Recommendations

• Currently, there is no strong reason for a price recovery.

• Caution is advised in the absence of bullish fundamentals.

• Focus on need-based buying only.

• Avoid aggressive long positions for now.

Conclusion:

The edible oil market remains weak, with a downward bias in the short term. Except for sunflower oil, most oils are under pressure. Cautious and minimal buying is recommended until clearer signals emerge.