🌾 Edible Oil Market Update

Advisory Bazaar Info Services

📌 KLC (Kuala Lumpur Crude Palm Oil)

* KLC opened with a gain of 54 points and maintained strength in mid-day trading.

* However, today’s uptrend is unlikely to sustain.

* KLC was supported by last night’s strength in CBOT soyoil, but DCE palm and soyoil showed no major gains.

* Any recovery in KLC should be seen as an opportunity for profit booking.

📌 CBOT Soyoil

* Closed last night with a gain of about 244 points.

* Reason for the rally: News related to US biofuels.

* The EPA may soon decide on 190 pending Small Refinery Exemptions (SRE) applications.

* Not all small refiners will get full relief; some exemptions may be partially rejected.

* The EPA may also postpone deciding whether large refiners must compensate for gallons exempted from small refiners.

* If small refiners are granted exemptions but large refiners are not required to compensate, demand and prices for soyoil may fall.

* The oil industry opposes such reallocation, arguing it will make competition easier.

📌 Indian Market

* Indian companies may raise prices of soyoil and palm oil today, following last night’s big rally in CBOT soyoil.

* However, demand will remain weak as traders avoid stocking up on news-driven rallies.

* Traders should use the period of 22–31 August to clear stocks.

* Avoid heavy buying for September.