Desiccated Coconut Market Report 31.01.24
We anticipate a notable surge in coconut prices for the upcoming week, primarily attributed to the relatively low volumes of raw materials. This situation is expected to be further compounded by the impending influence of El Nino on prices in the months to come. Notably, we have already observed a significant uptick in prices, witnessing an increase between $70-100 per metric ton.
The current scenario is characterised by the constrained availability of raw materials, leading to limited capacity in manufacturing facilities. Particularly, products originating from Indonesia have been entirely sold out for February, with only marginal availability projected for March. However, a more optimistic outlook is anticipated from April onward, with an increase in the availability of Indonesian products, and for those from the Philippines, a notable surge is expected starting from June.
Adding to the complexity of the situation, the imminent month of Ramadan is poised to impact factory production adversely, as workers adhere to fasting practices. This is anticipated to result in a considerable reduction in output, leading to a tangible shortage of products in the market during the months of March and April. Both of these factors paint a challenging landscape for the coconut industry in the short term, with price volatility and limited product availability likely to persist in the coming months.