Wholesale price of palm oil soars despite import of 30,000 tonnes

Although about 30,000 tonnes of palm oil were imported between 8 and 10 February, the wholesale price touched a high of K7,000 per viss, said a trader who sends edible oil to the regions outside the Yangon market.
The reference wholesale price for palm oil was set at K4,490 per viss for a week ending 19 February, which indicated only a small increase of K10 per viss from that of last week. The reference price showed only small changes between K4,430 and K4,490 per viss for five consecutive weeks from 16 January to 19 February.
The CIF price was US$1,020 per tonne then. As the CIF price and exchange rate were quite stable, the market price is forecast to decrease. Yet, expectations turned out wrong in the markets with another fresh peak.
The delivery order price was only K5,150 per viss on 28 December 2022 while the reference price was only K4,360 per viss. The current market price is too high at K7,000 per viss with the reference price of K4,490 per viss.
On 16 August, the market price was exorbitantly high at K9,700 per viss when the reference price was set at K4,140 per viss.
Approximately 40,000 tonnes of palm oil were imported per month in 2022. In the second week of February, over 30,000 tonnes of palm oil were brought into the market. Nonetheless, the market price peaked at K7,000 per viss. The price differences between the reference price and the wholesale market price were K250,000 per 110-viss and K1,250,000 per tonne.
Next, the fuel oil prices are set depending on international oil prices. However, the edible oil market fluctuates depending on the foreign market price and exchange rate. Nevertheless, the market price is two times higher than the reference price. — TWA/EM