Desiccated coconuts: buyers tend to panic buy

September 25, 2024 at 4:44 PM , Der AUDITOR
Play report as audio

MANILA/JAKARTA. Torrential rains and flooding in the major coconut-growing countries continue to be a problem in the international coconut market. Dwindling stocks in the western spot markets are causing buyers to panic buy.

La Niña could rage until February 2025

The Philippines are already reeling from the effects of tropical storm Yagi and the weather phenomenon La Niña has also left its mark. Floods and mudslides have damaged coconut plantations and oil factories, further straining the already tight supply situation, according to the experts from JCP International in their latest report. Further severe storms are expected until the end of the year. The World Meteorological Organisation has already warned that the effects of La Niña could extend into February 2025.

In other parts of Asia, too, torrential rainfall is causing flooding in many regions, including northern and southern Thailand and Vietnam. In contrast, the situation in Indonesia is not quite as serious, although heavy rainfall is also affecting the coconut crop here. After El Niño previously caused lower coconut yields, La Niña is now bringing immense amounts of water with it and coconut processors are fighting over the low stocks in order to keep their business going.

Prices could reach record high

Due to these circumstances, coconut oil prices are continuing to rise, currently trading at USD 1,750/mt in Rotterdam and market players are reckoning that prices could even exceed the EUR 1,800/mt mark. There is even speculation that high demand and limited availability could push prices up to a record level of USD 2,200/mt. As expected, prices for desiccated coconuts are following a similar trend. According to the experts at JCP International, buyers who have not hedged in advance with contracts are now panic buying. Further price rises are also to be expected here. Stocks are already running low in the important buyer markets such as Europe, the Middle East and North America, which is making prompt procurement more difficult. Freight rates have recently fallen again somewhat, but market players do not consider this to be a permanent trend. The ongoing conflicts in the Middle East could quickly lead to a turnaround.

View more
price chart, desiccated coconuts, Sri Lanka
price chart, desiccated coconuts, Indonesia
price chart, desiccated coconuts, Philippines 
price chart, coconut oil, Indonesia
more price charts

View related articles

Go to the News Overview
Dried Fruit
Feb 11, 2025
AYDIN. The Turkish dried fig market is slowly stabilising again, but trading activity remains low. Rainfall is expected in the growing regions in the coming days.
Dried Fruit
Feb 11, 2025
MANISA. Shipments to the EU are not going well this season. Pesticide residue levels in sultanas and raisins are currently increasing. Meanwhile, winter will stay in Turkey for a few more days, bringing snow to the growing regions from the middle of the week.
Dried Fruit
Feb 11, 2025
MALATYA. Cold weather and snowfall in Malatya are delaying deliveries to the markets and driving up prices. These are also being supported by high export demand.
Nuts
Feb 10, 2025
NEW DELHI/BRASÍLIA. In India, prices have fallen again slightly after last week's rise, and suppliers currently have little hope of an improvement. In Brazil, the weather is proving to be decisive for the new crop.