Edible Oil Market Report

Advisory Bazaar Info Services

Palm Oil Market Outlook

Palm oil prices are witnessing subdued local demand at higher levels, while overall supply remains adequate. However, import demand is expected to improve ahead of the upcoming festive season.

According to SPPOMA, palm oil production declined by around 9% during August 1–10, while exports remained strong during the same period. Overall fundamentals remain neutral to bullish, limiting the possibility of a major downside in prices.

After the recent recovery, palm oil is trading around ₹1,450–1,470 across various centres. Fresh buying at current levels is not attractive as the risk-reward remains unfavourable. Traders should adopt a hand-to-mouth buying strategy and prefer purchases on dips.

Soy Oil Market Outlook

Soy oil prices traded mixed amid mixed signals from international markets. Geopolitical uncertainty and subdued demand continue to keep prices range-bound.

Strong Argentine soy oil prices have kept landed costs above spot prices. Soy oil continues to trade at a disparity, which is limiting the downside risk. However, adequate supply and weak demand are likely to keep near-term prices under pressure.

Loose soy oil at ports is trading around ₹1,445–1,460, while prices on the Indore–Neemuch line are around ₹1,455–1,460.

Uncertainty surrounding the US–Iran conflict is expected to keep CBOT soy oil volatile, with 70 acting as a strong resistance level.

Overall Outlook

The overall outlook for soy oil remains stable to firm, while palm oil fundamentals remain neutral to bullish. However, forward buying at current levels does not offer a favourable risk-reward ratio.

Strategy: Prefer buying only on declines and focus on ready-delivery requirements rather than aggressive forward purchases.