Strong possibilities of price rise in edible oils and oilseeds.
05-Nov-2025 01:55 PM
Strong possibilities of price rise in edible oils and oilseeds.
★ Usually, demand slows down after Diwali, but the upcoming wedding season is expected to boost oil consumption.
★ Soybean production in the country is estimated to be 10–15 lakh tonnes lower than last year, bringing total output below 95 lakh tonnes.
★ Demand is likely to remain strong from November–December and continue till March, making this a good buying opportunity.
★ Globally, palm oil production has increased by 3 million tonnes and soyoil by 1 million tonnes, but ongoing issues in Ukraine and Russia have kept sunflower oil prices high.
★ In the international market, palm oil prices have declined by $50 to around $1,120 per tonne, soyoil is at $1,120–1,160, and sunoil at $1,350 per tonne.
★ Due to high sunoil prices, imports are expected to fall, while soyoil demand may rise. The current price difference of around $200 between sunoil and soyoil could further support soyoil demand.
★ In Madhya Pradesh, the government is procuring soybeans under the Bhavantar scheme.
★ Soybean prices are currently at lower levels but are expected to rise soon, possibly reaching MSP. Stocking of the new crop is increasing, which may reduce supply and support prices.
★ On the global front, the US–China trade deal will be crucial. If China increases soybean purchases from the US, it could impact global prices.
★ Mustard oil consumption is expected to rise now, as demand generally increases during the winter season.
★ Prices are currently stable but may move up in the coming weeks. Even if prices rise, government intervention is unlikely since current levels are still relatively low and farmers are benefiting from procurement and support schemes.
★ Overall, both domestic and global factors indicate a firm trend in edible oil markets in the coming months.
Important Disclaimer:
This report is for informational purposes only I-Grain India does not take any responsibility for profits or losses and does not promote any specific market movement (bullish or bearish). *Please make decisions based on your own judgment and understanding.