Palm oil wholesale price likely to dip below K6,000 per viss

The wholesale price of palm oil was stable at K6,500 per viss (a viss equals 1.6 kilogrammes) despite the possible decline in the market during the Thadingyut Festival. On 8 October, the price fell to K6,450 per viss.
As the price is expected to drop below K6,000 per viss, the supply surpasses the demand in the edible oil market, Ko Phyo, a trader who sends the goods to the regions outside Yangon, told the Global New Light of Myanmar (GNLM).
The dealers who made advance purchases of palm oil at K7,000 per viss two months ago just received their order this month. The news of some companies which might set the price below K6,000 per viss in the post-Thadingyut Festival is spreading in the markets, weighing on the dealers. The speculators forecast the price to dip below K6,000.  If it happens for real, the price difference between the reference price and wholesale price in the market is only K2,000 per viss.
Between 20 and 30 June 2022, the reference wholesale price in Yangon Region was K5,815 per viss. Meanwhile, the wholesale market price of palm oil was at K6,300-6,400 per viss on 28 June.
On 3 and 9 October 2022, the wholesale price in Yangon was set at K4,020 per viss. The reference price was down by K640 per viss compared to that of the previous week.
On 8 October, the wholesale price stood at K6,500 per viss, which declined from K6,650-6,700 per viss recorded on 4-6 October. The prices began sliding on 7 October, Myo Ko Ko, a trader who sends the goods to regions outside Yangon, told the GNLM.
On 10 October, the palm oil fetched only K6,400 per viss in the wholesale market, Ko Kyaw, a seller from the Nyaungpinlay market said.
On 5 October, ships carrying over 9,000 tonnes of palm oil arrived in Yangon. On 4 October, palm oil was priced at US$757.83 (3,424 Malaysian ringgit) per metric ton in the second-largest palm oil exporting country, Malaysia.
Malaysia shipped 2.32 million tonnes to foreign countries in September, including 260,000 tonnes to China, 230,000 tonnes to European Union countries and 180,000 tonnes to India.
The original price of Malaysia’s palm oil is only K4,000. Therefore, 18-litre cans of Malaysia’s palm oil with different brands are flowing into Myanmar via the cross-border trade channel. They are sold at K66,000-67,000 per can.
Most of the dealers are observing the market following the reference price which will be released on 11 October. On 7 and 8 October prior to the Thadingyut holidays, the shops at the Bayintnaung Wholesale Market offer a discount price. On 10 October, the shops closed at the Bayintnaung Wholesale Market, while the shops at the Nyaungpinlay market were opened with the palm oil price at K6,400 per viss. The retail price is K6,500 per viss, said a buyer who sells the fried fritters.
On 1 September, the palm oil price rocketed to K9,700 per viss in the wholesale market. The price plunged to K6,450 per viss on 8 October, indicating a sharp drop of K3,200 per viss over one month. — TWA/GNLM