Edible Oil Market Update

🔸 KLC (Palm Oil) –

KLC opened higher today but witnessed a decline during mid-day trading. With mixed cues from international markets, no major movement is expected in palm oil. Domestic demand remains sluggish due to the winter season. However, limited port supplies are preventing any sharp fall in prices. The market remains directionless in the absence of any new triggers. Weak exports and rising production and stocks are limiting the chances of a one-sided rally.

KLC (January) contract is expected to trade in the range of 4100–4300.

🔸 Soybean Oil –

Soy oil continued to rise for the second consecutive day on short covering ahead of the USDA report. CBOT soy oil closed 0.52 cents higher at 51.10 cents per pound last night. Argentina soy oil rebounded from its support level of $1170–1180 to around $1110/ton. (Note: likely typo — should be rising toward $1210/ton.) Global cues remain positive, and landing costs are expected to rise. The widening premium of soy oil over palm oil could support forward demand.

🔸 Mustard Oil –

Mustard oil maintained a firm tone amid limited selling and strong demand. Mills have increased purchases to build stocks ahead of the winter season. Strength in mustard meal is also supporting the ongoing rally. Mustard meal prices in Jaipur have crossed ₹2800 per quintal.

However, the widening price gap between mustard oil (up) and soy oil (steady/softer) could weaken demand going forward. High prices and sufficient supply may limit further upside.

👉 Advisory: Avoid aggressive forward buying at higher levels. Considering the progress in sowing and favorable weather conditions, the current uptrend may not sustain for long.