Palm oil market sees steep plunge in price before Thingyan holidays

The prices of palm oil have fallen unexpectedly during the two weeks before the Thingyan holidays (Myanmar New Year Festival), said edible oil sellers.
The delivery order prices were K6,400-6,500 per viss on 27 March in the Yangon market, decreasing from K6,600-6,700 per viss recorded on 24 March.
The majority of the sellers purchased palm oil at above K7,000 per viss. They are making losses due to the decrease in market price. Before the Thingyan holidays, approximately 20,000-30,000 tonnes of palm oil are expected to be brought into the country. Demand outstrips supply. There were only 10 days remaining to sell them to customers from regions outside Yangon.
Malaysian palm oil price is around 3,504 ringgit per tonne. The international oil price was still low at US$930 per tonne on 24 March. The price decline is attributed to the large volume of supply although the holidays are approaching.
However, the DO price is still K2,000 higher than the wholesale reference price for Yangon. The mobile market scheme has been carried out in the respective townships over months. The sellers stored the stocks at a high price yet the price moved down.
The traders who send the oil to regions outside Yangon pointed out that it is hard to guess the price fluctuation in the domestic market.
In the last week of December 2022, the price difference between the reference price and the market price was only K800 per viss. In early March, the difference widened to K2,000 per viss. Some vendors still generate profit from it. – TWA/EM