Edible Oil Market Update

Advisory Bazaar Info Services

🔹 KLC – Malaysian palm oil production remains weak, giving support to KLC. In China, palm and soybean oil are trading steady, while CBOT soybean oil is showing slight gains. Fundamentals for palm oil are mixed, while uncertainty around biofuel continues to weigh on soybean oil.

🔹 CBOT – Soybean oil has reached close to its support level at 50. After stabilizing, a recovery is expected. Although U.S. stocks have declined, the market is ignoring this due to expectations of higher production.

🔹 Domestic Market – With weak demand and global volatility, traders are limiting fresh purchases. In the near term, prices are expected to move in a limited range. Considering the festive season, chances of a major decline are low, and gradual recovery is likely. Today, domestic soybean and palm oil prices are steady.

🔹 Mustard Oil – Sufficient supply against weak demand is keeping prices range-bound. Oil weakness is creating pressure, but strong demand for mustard cake (DOC) is limiting the downside. Today, mustard oil declined by ₹5–10 per 10 kg, while DOC prices remained stable. In the near future, a major fall is unlikely. With the festive season and winter ahead, mustard oil consumption is expected to rise, supporting recovery. A fall beyond ₹100–125 per quintal in DOC is unlikely, and mustard oil may not see more than ₹1–2 per kg downside.