Food Oil Market Report

Date: May 6, 2025

Source: Advisory Desk – Market Info Services

Palm Oil

• Malaysian benchmark KLC opened lower; losses limited by midday.

• Market under pressure due to rising production and stock levels in Malaysia.

• July KLC contract likely to find support near 3600.

Soybean Oil

• Decline in CBOT due to Trump administration’s EPA cut proposal.

• Port-side supply remains weak, but domestic demand is also subdued.

• Short-term buyers advised to purchase as per immediate need.

• Long-term investors should consider gradual buying on dips.

DCE (China)

• Market opened weak after an extended holiday.

• Traders watching potential tariff discussions between China and the US.

Summary & Strategy

• International cues and domestic demand both remain weak.

• Palm and soybean oil trading at similar levels – demand remains under pressure.

• Seasonal consumption slowdown due to summer heat.

• Caution advised until May 15–20.

• Sunflower oil prices likely to remain stable in the near term.