📊 Veg Oil Update

Advisory Bazaar Info Services

🌴 Palm Oil (KLC)

• Opened with a small gain today, but fell by mid-day trade.

• China’s anti-dumping stance on canola oil imports pushed strong gains in KLC.

• Palm oil also surged on DCE (China), supporting KLC.

• Fundamentals remain strong, but external factors driving extra rally.

• Malaysia entering peak production season from September → higher supply may pressure upper levels.

• Strategy: Buy only for regular demand. Long-term stock buying is not favorable on risk-reward.

• Traders who bought at lower levels should hold until next week, then focus on stock clearance.

🌱 CBOT (Soy Oil)

• Closed with a small gain yesterday, but projections show weakness.

• Argentine soy oil prices remain firm.

• Since 10 August, global sentiment has been positive.

• USDA report supportive for soybeans, but lower exports + higher productivity may balance future prices.

🌿 Soybean (India)

• Crop condition normal in most states.

• SOPA: Sowing slightly lower than last year.

• As of early August, stock at 2.113 MMT (22% lower YoY).

• Supply sufficient until new crop; no concerns.

• High soymeal prices impacting early demand.

• Strategy: Limited upside → profit booking recommended in current rallies.

• SOPA estimates: 2025 soybean acreage down 2.63%, though Maharashtra reported +7% increase.

• 2024-25 season: Production 12.582 MMT + opening stock 0.894 MMT = total availability 13.476 MMT (import est. 5,000 MT).

• Previous season: Production 11.874 MMT + opening stock 2.407 MMT = total availability 14.281 MMT (imports 0.625 MMT).

• Oct–July 2024-25: India’s soy DOC exports down by over 11% (SOPA).