Limited Supply and Higher Demand Supports Rising Coconut Oil Prices in the Netherlands in Q3
Limited Supply and Higher Demand Supports Rising Coconut Oil Prices in the Netherlands in Q3

Limited Supply and Higher Demand Supports Rising Coconut Oil Prices in the Netherlands in Q3

  • 11-Aug-2023 2:35 PM
  • Journalist: Robert Hume

The price of Coconut Oil across the European region, primarily in the Netherlands, demonstrates an upsurged trend with the end of Q2, in early August, and is projected to continue this trajectory in forthcoming months as well. As per the current trend, the volumes from traditionally coconut-producing regions like southeast Asia were enough to meet the local demand and overall inquiries from neighboring countries. While according to previous data, for a multitude of reasons, the production of Coconut Oil in various states like Indonesia, the Philippines, and Malaysia was spiraling downstairs, leading some experts to warn of some upcoming coconut crises in which the supplies among the exporting nations cannot match overall demand which has further resulted in a surge in the prices of Coconut Oil across the globe. Additionally, vegetable oils are often used as a substitute for other types of cooking oils, Since Coconut Oil is used in various sectors, including cooking. However, the drop in production across the exporting nations and higher demand from importing nations such as the Netherlands affects the overall marker sentiments of Coconut Oil.

Apart from that, the El Niño weather phenomenon that results in drought and flooding severely impacts food production activity and negatively impacts crops in other producing countries in the previous month. This has significantly impacted the overall market trend for Coconut Oil as demand from neighboring countries surges while stocks continue to remain limited. As a result, the merchants raise their domestic prices. Furthermore, several other factors further contributed to a significant rise in the prices of Coconut Oil, including inflation, one of the primary factors contributing to the rising price of Coconut Oil. Because Coconut Oil has anti-inflammatory and anti-bacterial properties, demand for it is anticipated to rise. Due to the rising energy, raw materials, and labor costs in recent months, Coconut Oil production has become more expensive. Furthermore, as the Netherlands is one of the region's top exporters of Coconut Oil, demand for the commodity has continued to be weak across Europe, and regional export activity has decreased.

As per the ChemAnalyst prediction, "the prices of Coconut Oil in the Netherlands are expected to depict a weider market trajectory in the forthcoming period. Overall, the demand and supply are predictable to remain fragile within the regional market resulting in lessening import momentum from its exporting nations. Also, the trade activity is expected to decrease owing to lessen inquiries from its regional and neighboring countries."

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