Market info - Coconuts
The fears of market players have been confirmed: As the Philippines face numerous problems on various levels, coconut prices have increased significantly.
Experts report that the prices for desiccated coconuts from the Philippines have increased by 33% since the beginning of October. The reason for this were three strong typhoons within three weeks, which have massively damaged the infrastructure on the islands. In addition, there were power cuts, which also affected the coconut factories, and farmers reported severe damage to their crops, so that raw nuts are currently in short supply. In addition, the effects of the Covid-19 pandemic continue to cause production and transport problems.
Prices for other origins have also risen on the European spot market in recent weeks.
Since many ports in Asia are now overloaded, they are demanding so-called congestion surcharges from carriers. Also the container shortage is not solved yet and due to the heavy storms some routes still have to be rescheduled. Although market players reckon that coconut prices have reached their peak, they do not expect the situation to ease in the near future, so that the high level will probably be maintained for the next few months. Although the traders hope that the widespread use of the coronavirus vaccine will lead to improvements, some time will pass before the situation returns to normal.