Edible Oil Market Update

Advisory Bazaar Info Services

🔹 KLC (Kuala Lumpur Crude Palm Oil):

KLC futures opened on a steady note with no fresh trigger.

Palm oil production rose by 12.55% during October 1–5, putting pressure on prices.

Uncertainty over Indonesia and U.S. biofuel policies continues to impact the market.

There is still no clear outlook for post-Diwali demand, while weak consumption continues to weigh on edible oils.

Soybean supply is rising in both the U.S. and India, and oil imports remain elevated.

Despite the festive season approaching, domestic demand remains sluggish.

The biofuel policy updates from Indonesia and the U.S., the MPOB report, and export data for October 1–10 will guide market direction.

Overall, in the absence of strong triggers, edible oil prices are expected to remain range-bound.

🔹 CBOT (Chicago Soybean Futures):

CBOT soybean futures fell due to rapid U.S. harvest progress and weak Chinese demand.

Dry weather accelerated harvesting, and production is expected to reach record levels.

Around 39% of the U.S. soybean crop has been harvested so far.

Soy oil rose by 0.33 cents to 50.38 cents per pound.

In Brazil, 2025/26 soybean planting has reached 9%, the second-highest level for this time of the year.

Traders are waiting for the U.S. farm aid package and the upcoming Trump–Xi meeting later this month.

Trump has stated that soybeans will be a key topic in discussions with China.

🔹 Sunflower Oil:

Sunflower oil prices in the Indian market continue to trade firm.

Prices rose by ₹1.5–2.5 per kg last week, supported by strength in international sunflower oil markets.

In Europe, prices at six major ports rose by $30–35 per ton over the past week.

In Ukraine, sunflower prices have started rising sharply again due to harvest delays caused by continuous rain in western and central regions.

Slow arrival of the new crop has also lent support to prices.

India’s sunflower oil imports have increased 70% year-on-year, reaching 260,000 tons.

However, ample supply and weak demand have capped major upside potential.

With Diwali approaching, sunflower oil prices are expected to remain firm.

We have been advising stock purchases for Diwali over the past 2–3 weeks.

Traders are advised to hold existing stocks and complete sales 3–4 days before Diwali,

while avoiding fresh buying after the festival.