Mundus Agri. In its latest report, Experts draw particular attention to the difficult demand situation in 2022, which will continue in the new year. Worldwide recessions and a large amount of available goods are contributing their part.
Significant price declines for coconut oil
In their current annual review, the experts revisit the ups and downs of 2022 on the coconut market. It becomes clear that demand for desiccated coconuts has fallen massively; global inflation problems and rising interest rates have severely dampened purchasing power. Add to this China's zero-covid policy, which was declared over last week but had caused major hurdles in trade during the year. Since, according to experts there were more oil mills this year than ever before, low demand met with high supply, which also put noticeable downward pressure on coconut oil prices.
There is good news for the start of the new year, at least on the freight rate side; these have fallen from USD 18,000 for a 40'FCL at the beginning of the year to as low as USD 1,800 in some cases in December. Retail sales are expected to decline further in 2023 as financial problems worsen. Demand is thus likely to remain weak at least in the Q1 of 2023, especially as large stocks still have to be reduced in some cases as well. Experts state that plans for more mills have been put on hold for the time being, and smaller mills already in operation have also had to close.