Edible Oil Market Update (Date: 8 May 2025)

Malaysian Palm Oil (KLC):

KLC continues its downward trend, weighed down by weakness in China’s DCE. Mid-day trade also reflected a bearish tone. As previously mentioned, key support is seen around 3600, and prices may slide to this level before stabilizing.

CBOT Soy Oil:

Soy oil closed lower last night. It is expected to move towards 44, having failed to break above the resistance at 50. Additionally, Trump stated that the U.S. will not provide major tariff relief to China all at once. A meeting between the U.S. and China is scheduled, adding uncertainty to the market.

Indian Market:

• Mustard Oil: Trading within a narrow range. Due to continued weakness in palm and soy oil, the price gap between mustard and other oils has widened to Rs. 11–12/kg.

• Demand: Rising temperatures in North India have weakened consumer demand for mustard oil.

• Prices: Jaipur Kacchi Ghani mustard oil, which had previously risen from Rs. 1250–1260 to Rs. 1350, is now trading around Rs. 1300/kg.

• Outlook: Experts believe that due to limited stock in other oils, a major decline in mustard oil is unlikely. While no major rally is expected in May, there is a strong possibility of upward movement in the coming months.