Edible Oil Market Update
Advisory Bazaar Info Services
Palm Oil
• KLC opened lower following weakness in DCE (China).
• Fundamentals remain weak: exports have declined while production has increased, leading to higher inventories.
• For January contract, support is seen at 4100, while 4350 is acting as resistance.
• Indonesia’s palm oil stocks fell by 1% in August, offering temporary support; however, higher stock estimates in Malaysia are capping gains.
• Weakness in CBOT soybean oil continues to pressure palm oil prices.
• Market focus remains on Malaysia’s upcoming palm oil stock report.
• Prices are expected to remain range-bound between 5–10 November, offering buying opportunities on dips.
✅ Trend: Range-bound; buying on decline is advisable.
Soybean Oil
• CBOT soybeans hit a 15-month high after China agreed to purchase 12 million MT of U.S. soybeans.
• The U.S. reduced tariffs on Chinese goods from 57% to 47%, supporting positive sentiment.
• CBOT December soybean oil declined by 0.51 cents to 49.65 cents/lb.
• Weak demand and comfortable global supply continue to weigh on prices.
• Domestic soybean crushing remains strong, keeping domestic supply abundant.
• Indore line soy oil prices declined by ₹5–10 per 10 kg today.
• Prices have corrected ₹2–₹3 per kg so far.
• ₹1210–₹1220 is considered a good accumulation zone; ₹1200 remains strong support.
✅ Strategy: Prefer limited / need-based buying near ₹1215–₹1220; wait for positive triggers.
Indian Market Outlook
• Soybean oil nearing ₹1210–₹1220, where demand is expected to improve.
• Local crop arrivals and better import parity may keep upside limited in the near term (7–10 days).
• Sunflower oil likely to remain steady to firm due to tight export availability.
• Mustard oil remains weak due to sluggish demand and high prices.
Conclusion
Overall tone of the domestic edible oil market remains weak due to:
• Soft international cues
• Adequate supply
• Slow domestic demand
📌 Adopt a “buy-on-dip” approach, particularly in palm and soybean oil.