Market News 18th March 2024

Palm Oil and Coconut Oil prices jumped almost 12% on Friday, 7th March, to a price not seen on the Rotterdam market since September 2022.

What were the causes?

While there is no single cause of the increase, crude oil prices are increasing due to increased demand and expected lower OPEC production.

Palm oil, which is in shorter supply due to lower crop yields, has also seen price increases, pushing up other edible oils.

The overall market sentiment is that many countries are about to come out of recession, pushing up demand and prices further.

What Next?

We expect this price increase to spill over into other coconut products like desiccated as perceived demand increases and supply becomes further limited.

We know that some suppliers are playing catch-up from closures earlier this year and that any stockpiles have been used up.

The effects of the shipping delays mean many people are buying way in advance of the requirement to ensure consistency of supply over price, further putting pressure on the market.

So we advise to get your orders in as soon as possible to ensure we can advise on delivery times and secure prices at the best rates possible.