Palm oil market sees record jump in mid-September

The imported palm oil market hit the highest tracking Kyat weakening and drop in global palm oil supply.
Kyat depreciation in the local forex market adversely impacted the imported edible palm oil market, coupled with the shipment problem amid the COVID-19 pandemic. The prices of imported edible palm oil remained upward trend, the edible oil traders stated.
The price soared to US$1,185-1,355 per 18-litre can at present. The price may vary depending on the local currency value. The palm oil was priced at over K4,200 per viss in the Mandalay market, Mandalay wholesale market’s data indicated.
In early January 2021, production slump in importing countries Malaysia and Indonesia, caused by erratic weather conditions and the COVID-19 impacts, high imports by certain countries under tax reduction, a tax hike on exports in producing countries and the short storage of palm oil in those countries contributed to the rise in edible oil price. The palm oil price stood at $1,055-1,200 per tonne in the foreign market then.
Myanmar brought in 620 million worth of palm oil in the past nine months (October-June) of the current financial year 2020-2021, according to the Myanmar Customs Department.
“The oil palm trees produce fruits in abundance this time. The price is likely to be in the bull market up to October if any trade barrier will not occur,” Chair U San Lin of the Myanmar Edible Oil Dealers’ Association said.
Myanmar Edible Oil Dealers’ Association is attempting to maintain price stability, prevent market manipulation, import the palm oil from foreign countries sustainably for self-sufficiency, distribute the edible oil at a fair price to the consumers and ensure that there will be no edible oil shortage in regions and state when there is a rise in imported oil price.
The domestic consumption of edible oil is estimated at 1 million tonnes per year. The local cooking oil production is just about 400,000 tonnes. To meet the self-sufficiency in the domestic market, about 700,000 tonnes of cooking oil are yearly imported. — KK/GNLM