Palm oil market sees slight rise

The wholesale prices of palm oil touched a high of K8,500-K8,600 per barrel on 10 September, when the reference price in Yangon for a week ending 18 September was set at K4,730 per viss.
On 14 September, the price slid to K7,600-K7,800 per viss. However, the price rebounded to K8,700-K8,800 on 17 September, Ko Aung Ko, a seller at Nyaungpinlay market in Yangon, told the GNLM.
Those involved in deep-frying snack businesses said they purchased palm oil at K8,200 in the retail market on 14 September and K8,900 on 17 September. The price bounced back from a three-day fall in the domestic markets, causing the sellers to face some hurdles.
The price peaked at K9,700 per viss in the wholesale market. After two weeks, the price dropped to K7,600-K7,800 per viss. The price increased again to K8,700-K8,800 per viss on 17 September.
When the palm oil prices were volatile in the first 15 days of September in the Yangon market, the price index showed downward in the major producing country Indonesia, according to the edible oil market’s reports.
Between 1 and 15 September, the current export tax for crude palm oil is $74 per tonne, with the reference price set at $929.66 per tonne. For a 16-30 September period, the reference price was set at $846.32 and the export tax for the crude palm oil was $52, according to Indonesia’s official statement released on 15 September.
Similarly, a tonne of palm oil was priced at 3,481 Ringgit on 9 September. When it is exchanged to local currency, palm oil is worth only K2,620 per viss. On 8 September, palm oil price hit 3,615 Ringgit. On 25 August, it soared to 4,294 Ringgit per tonne ($945) and (K2 million). Yet, the price was valued at only K3,250 per viss, according to Malaysia’s palm oil market data.
On 12 September, the CIF price of palm oil was US$989 per metric tonne. If it is calculated on the foreign exchange rate of K2,703, the original price of palm oil is only K4,639 per viss and K2.8 million per tonne, according to non-governmental edible oil dealers’ association.
On 17 September, the wholesale price climbed to K8,800 per viss in the markets. Therefore, the palm oil was worth K5.4 million per tonne when it is calculated on the market price.
Between 29 August and 4 September, the CIF price was $1,088. The original price was K4,814 per viss and the reference price was K4,910 per viss then. The wholesale price of palm oil for a week from 5 to 11 September was set at K5,220 per viss, according to the reference price official release every Monday.
While the palm oil was priced around K1.6 million per tonne in foreign markets, the original price was K2.8 million per tonne in the Yangon market. The wholesale price peaked at K5.4 million per tonne.
Only a small number of consumers have access to the mobile market trucks that offer the palm oil at subsidized rates. Most of the consumers are forced to purchase the oil in the retail markets at the higher prices which is about double of the reference prices, the buyers stressed.—TWA/GNLM