Edible Oil Market Update

Advisory Bazaar Info Services

🔹 Market Situation

* KLC opened lower today and remained under pressure during mid-day trade. However, U.S. tariff relief on Indonesian palm oil provided some support.

* The narrowing discount of palm oil against soyoil and weak demand outside China kept gains limited.

🔹 International Cues

* Argentina September FOB stable at $1120/ton.

* Basis improved from -275 to -175, indicating stronger bids and better demand.

* FOB range stable at $1115–1130/ton, reflecting export competitiveness and firm demand.

🔹 Domestic Oil Outlook

* Soyoil expected to find support near ₹1200, current range ₹1215–1230.

* Mustard oil trading at a high premium, but facing pressure from weak demand, soft soya DO, and canola imports.

* Palm oil likely to remain steady due to high prices and sluggish demand.

* Soyoil may trade steady to lower today, while palm oil is expected to stay range-bound.

🔹 Policy Rumors

* Market speculation suggests the government may increase the reduced import duty on crude edible oils in May 2025.

* The reduction in May was aimed at benefiting local refineries.

* No official confirmation yet, so this remains only a rumor.

🔹 Global Impact

* The U.S. has imposed a 50% tariff on agricultural imports from India.

* This move could significantly affect Indian agri-exports, especially rice and pulses.

* The tariff came into effect yesterday.