DO price of palm oil stands above wholesale reference price with slight difference

December 07


The Delivery Order (DO) price of palm oil stood at K5,350-K5,400 per viss (a viss equals 1.6 kilogrammes) at oil tanks in the Yangon market and the market retail price touched only K5,400-K5430 per viss on 6 December 2022, according to the Bayintnaung oil market.


The palm oil price at oil tanks in Meiktila fetched K5,600 per viss on 6 December, K200 higher than Yangon. The regional price rate of palm oil is normally around K100 per viss higher than Yangon, commented tan oil trader.


The wholesale reference rate of palm oil in the Yangon market rose by only K200 per viss in November. However, the oil wholesale reference price shoots up to K4,630 per viss between 5 and 11 December, indicating a price rise of K205 per viss within one week. Therefore, the DO price was K720 per viss higher than the wholesale reference rate on 6 December.


The retail price of palm oil went up to approximately K4,000 per viss than the reference rate around August 2022.


It is reported that the DO price, the wholesale price and the retail price of palm oil were being sold at the same price in the Yangon oil market within these months. The usual price gap between the wholesale price and the retail price is K30 per viss. However, the demand for oil in the Yangon oil market is decreasing this month. Thus, the same rate for palm oil is the distinguishing feature of the Yangon oil market at the end of this year, said an oil dealer.


Oil dealers in Yangon and other regions are at a loss this month. Thus, an oil seller suggested that the price gap between the wholesale reference price and the raised DO price should be reduced.


As such, most consumers will be able to buy palm oil at a reasonable price that will be less different from the reference price. — TWA/CT