What Lies Ahead for Edible Oils – What Should Be the Strategy?
18-Aug-2025 05:46 PM
What Lies Ahead for Edible Oils – What Should Be the Strategy?
Palm Oil
★ Global markets are witnessing firmness.
★ With rising use in bio-fuel, export availability is expected to shrink, and Indonesia is increasing its export levy to reduce imports.
★ Production in Malaysia and Indonesia has not seen significant growth, but exports and domestic demand remain strong.
★ In the coming days, palm oil prices are expected to stay above soybean oil.
★ The Indian market is completely dependent on imports.
★ Considering the upcoming festive demand, refined palm oil prices may rise further.
★ It would be wise to book profits from time to time and give priority to trading rather than stocking.
~~~~~
Soybean Oil
★ In the U.S., soybean usage in bio-fuel production is increasing.
★ Many countries are witnessing a rise in soybean production, while foreign demand is also providing support.
★ With festive demand ahead, India has increased soybean oil imports, which was natural.
★ At the same time, high palm oil prices are also supporting soybean oil prices and exports.
★ Crushing of soybeans in India is moving slowly, increasing dependency on imports.
★ If palm oil prices continue to rise, domestic demand will remain strong despite higher imports, providing continued price support.
★ Considering government intervention and new stock disclosure rules, traders should focus more on trading than stocking.
★ Prices are expected to get further support in the future.
~~~~~
Mustard Oil
★ Domestic demand has once again started supporting the market.
★ Strong mustard oil prices are being driven by rising demand. Going forward, demand for mustard is expected to remain healthy.
★ Despite sales by government agencies, the market remains firm.
★ In the future, both mustard and mustard oil prices are expected to stay strong.
~~~~~~
Sunflower Oil
★ Sunflower crop production abroad has declined, which has affected crushing.
★ Lower crushing has reduced availability and pushed markets higher. With global markets rising, India’s import costs have also gone up.
★ Going forward, demand is expected to provide more support to prices.