2018 was a recovery year for DC after the price shocks and shortages in the previous 2 years.
Indonesia exported 115,000 mt of DC and for the first time exceeded the Philippines which exported 110,000 mt. The other two main exporters, Vietnam and Sri Lanka, exported around 37,000 mt and 25,000 mt respectively.
The main factors which impact on the price of coconut are as follows (All three are inter-linked):
- The price of coconut Oil
- The weather
- Availability of Nuts
Coconut Oil prices have been low for most part of 2018 mainly due to adequate availability of Nuts and Nuts have been plentiful because there have been no major typhoons in the latter part of the year. This is why prices suddenly fell in the last quarter of 2018.
Nevertheless, there are reports coming in from both Philippines and Sri Lanka that farmers are unwilling to sell at very low prices and factories are also faced with high cost of labour and energy. So prices have started creeping up once again.
If anything, our advice to our customers is that the current levels are good to cover at least for the first quarter’s requirement.