Palm oil market value becoming volatile

The Yangon market saw a price swing in the first week of 2023. The wholesale price of palm oil rose to K6,100 per K5,250 per viss, Ko Aung Win, a seller at Nyaungpinlay market, told the Global New Light of Myanmar.
The wholesale prices have been below K6,000 since mid-November 2022. It dropped down to below K5,500 per viss in early December 2022.
Nonetheless, demand outstripped supply, causing a gradual increase in the markets, said a trader involved at Bayint Naung Wholesale Market.
Moreover, the wholesale reference price for palm oil also increased to K4,470 per viss during the week ending 8 January 2023, which is up by K110 compared to that of the previous week. Meanwhile, the market price was also up by K1,000 per viss in the Yangon market.
The price ranged from K6,120-6,300 per viss in the wholesale markets of Yangon and Mandalay cities on 8 January 2023.
The palm oil to be imported soon is offered at K5,700-5,900 per viss, yet demand is pretty low. At present, the international oil price and the foreign exchange rate remain unchanged. The price rise is attributed to the supply. Those sellers in possession of palm oil stocks are selling fast with the prevailing market rate when they keep the stocks at a low rate.
The FOB price of palm oil was US$1,056 per tonne during the 5-12 December period and $1,019 per tonne for the week ending 8 January 2023.
The entry of oil cargo and withdrawal of palm oil usually weigh on the market price. Those traders who kept the stocks in hands at the lower rate reaped a great profit, a trader said.
There is speculation about the price returning to the regular rate in the domestic market in the second week of January 2023. — TWA/EMM