Weekly Edible Oil Market Update

Advisory Bazaar Info Services

🔸 KLC Update:

KLC continued its decline through midday after opening weak. Last week, it closed up by 1.27% due to expectations of a decline in palm oil stock. According to a Reuters survey, Malaysia’s palm oil stock may decrease by 0.24% by the end of June. Profit booking was seen at the 4150 resistance level. Technically, KLC remains neutral in the 3950–4150 range. Buying is advisable on corrections. The upcoming MPOB report will be a key trigger next week.

🔸 CBOT Update:

CBOT soybean oil closed the week with a 3.94% gain, supported by bio-diesel demand and tax credit news. Continued high blending volumes are expected to support prices further.

🔸 India Market Update:

With strength in both KLC and CBOT, domestic palm oil prices showed a slight uptick — Kandla palm oil rose by ₹2 to reach ₹1150/kg. June imports may increase supply, but weak demand continues to exert pressure. The palm oil market remains rangebound for now, though the long-term outlook is strong. Buying on dips is advised.

🔸 Soybean Oil:

Loose soybean oil prices rose by ₹5–15/10kg last week. June imports fell 9% to 3.63 lakh tonnes. Stocks remain tight, but demand is weak. Fundamentals are strong, and the market is expected to stay rangebound for the next 7–10 days. Buy on corrections; a gradual uptrend is likely in the long term.

🔸 Mustard Oil (Jaipur Kacchi Ghani):

Prices have crossed ₹1500. Most mills are closed, leading to lower crushing and tighter supply. With support from festive demand, prices may rise to ₹1550–1600 in the longer term.

🔸 Investment/Trading Strategy:

Current corrections should be seen as buying opportunities. The long-term outlook for palm, soybean, and mustard oils remains positive.