Weekly Edible Oil Update | Advisory Bazaar Info Services

🌴 Palm Oil:

KLC opened lower today and continues to trade weak in the mid-day session. It fell 0.7% last week due to expectations of higher July stocks and weak exports. Production improved in July with a 7% increase in yield.

🌱 Soybean Oil (CBOT):

Closed 3.20% lower last week. U.S. soybean oil stocks rose at the end of June, but crushing remained weak. Favorable weather for soybean crops and weaker crude oil prices kept CBOT soybean oil under pressure. However, the long-term outlook remains strong due to increasing biodiesel usage.

🇦🇷 Argentina Soy Oil (FOB):

Prices dropped by $20–251/ton last week. Despite the decline, demand from India is expected to remain strong due to upcoming festive season, limiting further downside.

🇮🇳 Indian Market:

Indian palm oil prices ignored KLC weakness, rising ₹1–2/kg across key centers. India’s palm oil imports in July fell by an estimated 11% MoM and 21% YoY.

Soybean oil prices rose by ₹1/kg to ₹1220, though Indore line prices fell ₹5–10/10kg due to weak demand and lack of global support.

Landing cost fell ₹1–1.5/kg, reducing import disparity. There is still room for ₹4/kg upside in Indore and ₹2–3/kg in Kandla.

Traders can consider buying on dips ahead of expected festive demand at the end of August.

🌾 Mustard Seed:

Prices remained stable to ₹50 lower last week. Rain affected arrivals, but demand stayed weak. Government agencies lowered auction prices, adding pressure.

Mustard oil prices fell ₹1–1.5/kg due to weak retail buying at higher levels, while cake prices saw a slight rise.

🥫 Mustard Oil:

Currently sluggish due to monsoon and Sawan month. Experts expect festive demand to prevent any major downside.

After a sharp rally, some correction is healthy and may lead to strength ahead.

Recovery is expected post-August 10 — buying on dips before this date is advisable for stocking till the end of August.

📌 Suggestion: Use price dips as an opportunity to stock up ahead of festive demand.