Palm oil price likely to decline as international markets show signs of cooling down

Due to the international market cooling down, the wholesale price of palm oil was estimated at K5,680 per viss (a viss equals 1.6 kilogrammes) on 4 December. It is expected to decline on 5 December, a seller in Yangon city said.
The price of Malaysian palm oil touched only 3,950 Malaysian Ringgit per metric tonne on 4 December, whereas the palm oil fetched just K5,600 in Yangon markets, Ko Phyo, who distributes palm oil to the regions outside Yangon from the Bayintnaung wholesale market, told the Global New Light of Myanmar (GNLM).
Malaysian palm oil price decreased from 4,005 Ringgit per tonne in early December. It has tremendously soared to 7,000 Ringgit prior to the mid-2022. The price then hit 4,250 Ringgit in November.
On 28 November 2022, the delivery order price was only K5,450 per viss, while the wholesale price stood at K5,500-K5,550 per viss, Ko Swe Win, a seller from Nyaungpinlay market told the GNLM.
On 3 December, the wholesale prices were K5,600-K5,650 per viss in Yangon’s Bayintnaung market and K5,750-K5,800 per viss in Mandalay market.
The wholesale reference price of palm oil for the Yangon market was set at K4,425 per viss for a week from 28 November to 4 December. The reference price in November increased at a small pace from K4,225 in early November to K4,425 per viss at the end of November. The reference price is issued on a weekly basis on Mondays.
The market prices of palm oil in November decreased from K6,250 to K5,600, indicating a drop of K650 per viss.
These days, the international prices of palm oil remain unchanged. Within a week ending 4 December, as per the official release, the palm oil prices were US$1,009 per tonne of CIF CP8 C Max IV58 and $1,159 per tonne of 18-litre jerry can CIF IV58. The original price is K4,340 per viss if it is calculated on the exchange rate for a US dollar at K2,478.
The market price of the palm oil is likely to go down below K5,000 per viss as the palm oil usually freezes in the winter and the foreign markets are cooling down. Therefore, the difference between the market price and the reference price will continue to narrow. Consequently, the importers and the sellers will abide by the directives of the authorities and the consumers can buy the oil at fair price.
The locally produced peanut oil and sesame oil that do not freeze in the winter are valued at K9,000-K9,500 per viss in the markets. The gap between the vegetable price (18-litre jerry can) and the palm oil market price was not that different in the previous months. Yet, there is a difference of K1,000 per viss this month, Ko Htay, a seller from Myingyan Township, told the GNLM.
The palm oil with Iodine Value of above 58 (IV 58) does not freeze in the winter, said a dealer.—TWA/EMM