Market Update 10th May 2021

There is still a significant challenge for the Philippines coconut market. COVID is still a massive issue in the country and is meaning that any improvements have been eroded.

Orders are still roughly six to eight weeks behind for most dry coconut lines. However, factories are testing running longer runs of specific cuts like macaroon and medium to boost production. They are pushing speciality cut to produce only on certain days.

The sporadic supplies of raw nuts is improving, but the ongoing COVID related staffing issues are still an issue for the mills that they are struggling to overcome.

Producers are withdrawing from the market for short periods to catch up, with positions in July full and August very tight.

The post-Suez shipping forecasts are similar to the rest of the year – prices continue to remain high – especially as the major shipping companies are making big profits off the back of this. Reports differ on when or if prices will come down – the best guess is they will remain high for the foreseeable future.

Stock levels are depleted across the EU and in the US, with buyers desperate to get any stock they can and are putting pressure on buyers and brokers, who face the same challenges of getting hold of stock.

Our best forecasts are that things will not change significantly in 2021, with shortages continuing right into Q4 and prices remaining high for raw materials and shipping. Supply may not improve in 2021 if the typhoon season in the Philippines is anything like 2020.