Coconut Market Report 24.05.24

Date: 24th May 2024 Category: Latest News
Coconut Market Report 24.05.24

The supply situation for raw coconut continues to deteriorate across all origins, leading to significant price increases for raw materials. Desiccators and oil extractors are competing for the limited supply of nuts, intensifying the problem. This scarcity has also caused substantial delays in shipments, with lead times now extending to 6 to 8 weeks.

The 2024 raw material supply has been severely impacted by the El Niño weather phenomenon, which brought extreme heat and dryness in 2023. Similar conditions are expected in 2024, likely affecting the 2025 crop as well. Once El Niño ends, meteorologists predict a transition to the La Niña weather pattern in Asia, which brings heavy rains and flooding.

Extreme heat from El Niño (45-52°C experienced in Thailand this year) has made harvesting impossible. Conversely, the excessive precipitation and flooding associated with La Niña will further impact crop and harvesting capabilities, coinciding with a period of naturally low crop yield. The 2024 crop situation is worse than usual, and further shortages are anticipated. The Philippines is largely offering shipments for September-October, while Indonesia has limited availability for June and is offering shipments from July onwards.

Currently, stock levels for spot material in markets like Europe and North America are very low. As we approach Q3 and Q4, periods of highest demand, we urge all partners to secure your requirements in advance to avoid stockouts or higher prices. It is crucial to secure your supplies now to prevent any disruption or increased expenses.

via Jascorp