Market Report: Positive Momentum in Palm and Soybean Oil Markets
The edible oil market is currently witnessing a phase of recovery and renewed buying interest, particularly in palm oil and soybean oil (SOPA), which are showing signs of upward momentum both domestically and internationally. Palm oil prices have seen a notable rebound in the domestic market, driven by strength in Malaysia KLC Exchange. Prices rose by approximately ₹4-5 per kg, reflecting improved sentiment. Although Malaysian export data has been somewhat weak-raising the possibility of a minor correction-there is no clear indication of any major downside risk. In fact, market experts such as Mandi Market Media suggest that such dips present attractive buying opportunities. In early trading, the August contract on Malaysia KLC Exchange opened down by 10 ringgit at RM 4148, while the November contract showed a modest gain of 3 ringgit, closing at RM 4234. Similarly, China Dalian Exchange showed marginal gains in RBD palmolein futures, with the July contract rising by 30 yuan to reach ¥8770. Soybean oil has also shown a firm trend in the domestic market, with prices increasing by ₹5-10 per 10 kg. Notably, Kandla SOPA oil closed at the resistance level of ₹1185. If this level is breached, technical analysts expect a further rally towards ₹1240-1250. The market has already seen a healthy ₹3-4 per kg recovery from recent lows, helping to restore trader confidence. The long-term outlook for soybean oil remains optimistic, supported by global market trends. On the international stage, the Chicago Board of Trade (CBOT) reported gains across the soy complex. Soybean oil September futures ended at 654.64, up by $0.22. Soymeal and soybean prices also recorded strong gains, rising by $3.2 and $18.4 respectively, signaling a broad-based positive sentiment. In China, soybean oil futures have remained consistently strong from August through November, with November contracts reaching ¥8070 a rise of ¥40. Overall, both palm and soybean oil markets are recovering steadily from recent lows. The increased activity from buyers in both spot and futures markets, coupled with festive season demand and rising mustard seed prices, is providing additional support.