Edible Oil Market Update: Palm Oil Finds Support, Soybean Oil Remains Under Pressure

Advisory Bazaar Info Services

The global edible oil market witnessed a mixed trend today. Malaysian palm oil futures (KLC) gained modestly on the back of Indonesia’s expanded biodiesel program, firmer crude oil prices, and strong physical demand from India. Meanwhile, soybean oil remained under pressure due to continued selling in international markets.

Palm Oil Market Update

Malaysian palm oil futures (KLC) rose around 0.45% in early trading, supported primarily by Indonesia’s revised biodiesel policy.

Indonesia has increased its 2026 palm-based biodiesel allocation to 16.75 million kilolitres, up from the previously announced 15.65 million kilolitres, reinforcing expectations of stronger long-term palm oil demand.

Additional support came from bargain buying at lower levels, improving crude oil prices, and healthy physical purchases from India. However, gains remained capped amid expectations of higher palm oil production during July.

Palm Oil Outlook

* KLC is expected to trade within the 4,500–4,750 range until fresh market triggers emerge.

* Loose palm oil prices in India are likely to remain stable in the near term.

* Pre-festival demand could encourage buying at lower levels.

* Loose palm oil prices are expected to trade in the ₹1,410–₹1,480 per 10 kg range.

* Traders may consider building inventories during the current correction, as market sentiment is expected to improve after 10 August.

Soybean Oil Market Update

Domestic soybean oil prices ended marginally higher today, tracking early strength in international markets. However, CBOT soybean oil failed to sustain its gains and declined sharply during the evening session.

Despite firmer crude oil prices and rising geopolitical tensions between the US and Iran, soybean oil continued to face selling pressure.

As highlighted in our earlier outlook, a break below 70 cents could push CBOT soybean oil towards 65 cents. With prices now approaching that level, the market may begin to stabilize.

Soybean Oil Outlook

* Weakness in CBOT soybean oil could keep domestic soybean oil prices soft in the ₹1,420–₹1,430 per 10 kg range.

* The current decline is viewed as a short-term correction rather than a change in the broader trend.

* The market is expected to remain range-bound through the first week of August.

* Stronger festival demand after 10 August could provide fresh support to prices.

* The ongoing correction may present an attractive buying opportunity for traders and investors.

Conclusion

The edible oil market remains under short-term pressure, but palm oil continues to receive support from robust demand and Indonesia’s expanded biodiesel policy. Soybean oil, on the other hand, remains weighed down by weakness in international markets. If festival demand strengthens as expected, the edible oil market could witness a meaningful recovery after 10 August.