Site icon Global New Light Of Myanmar

DO price of palm oil declines in Yangon edible oil market

The palm oil market is expected to be sluggish in mid-November 2022 during the winter, Ko Maung Ko, a buyer at Nyaungpinlay market told the Global New Light of Myanmar (GNLM).
The price of Delivery Order (DO) decreased from K5,950 per viss on 16 November to K5,750 on 18 November.
The demand for palm oil is estimated at 1,500-2,000 tonnes (7,000-10,000 barrels) per day in the domestic market, said an official of the Myanmar Edible Oil Dealers Association. From 17 March, the new dealers were seen in the market and the demand was up by 4,500-5,000 tonnes. On 18 March, the association decided to sell palm oil to regular buyers only.
The wholesale price increased by K300 per viss then. In mid-2022, the price indicated a sharp rise of K4,000 per viss compared to the reference price. It is hard to purchase palm oil in the market as of early October. The price is headed for fall from mid-October and the market is slow-moving. The market is cool these days, Ko Thet Tun, a dealer who sends the oil to regions outside Yangon, told the GNLM. The subsidized scheme in each ward in Lanmadaw Township offers the cheaper rate of palm oil and eggs by mobile market trucks. Yet, the consumers mostly buy only eggs, Ko Myo Win told the GNLM.
The retail price of palm oil was K6,200 per viss at Nyaungpinlay market. The wholesale reference price in Yangon was set at K4,350 for this week, showing a gap of about K2,000 against the market price.
The DO was priced at K5,750 per viss on 18 November, which is K1,400 per viss higher than the reference price. The palm oil was valued at around K6,000 per viss in the wholesale market. The price difference between the reference price and the market price narrows to below K2,000 per viss, while there is a gap of K1,400 per viss between the DO price and the reference price.
The demand is remarkably dropping these days. The purchase order from the regions outside Yangon has also fallen. As the traders have decent stocks in hand while the price is falling, they do not buy large quantities. The demand dropped by half, said a seller.
Many ships carrying palm oil are docking at the terminals in Yangon Port as of early November. The supply is exceeding the demand for sure. The price movement is not seen in the foreign market as well.
Those resellers are facing losses as it is in the bear market. They do not dare to take a risk to buy larger volumes than the demand. The stable foreign exchange rate and unchanged prices in external markets are contributing factors to the slow market. The importers reduce the DO price to under K6,000 per viss, as per the oil market reports. The chance of getting the DO of the palm oil at the wholesale reference price of K4,350 is still less and the DO can be bought at the market price.
The price of palm oil with 18-litre jerry cans is still high despite the decrease in the price of palm oil with containers. The palm oil market price stood at around K6,000 per viss in the wholesale market, while the branded palm oil fetched K67,000-K70,000 per jerry can. The palm oil prices were only K6,150 per viss in Myingyan and Meiktila areas on 18 November, a dealer Ko Win Tun stressed. — TWA/GNLM

Exit mobile version