Market Update 1st June 2024

Summary of International Pricing for Desiccated Coconut and Coconut Oil

Tropical cyclone “Aghon” passed by the country’s eastern coast late Friday night and then remained over the Philippine islands for several days last week. It brought moderate to torrential rain and strong winds, resulting in seven deaths, flooding, and damage to trees and crops.

Despite the significant increase in the country’s exports of coconut products in April, January-April data only slightly exceeded last year’s, as Q1 was down overall.

Philippine manufacturers are still grappling with raw nut shortages. This persistent challenge highlights the potential for future price increases and supply challenges in the coconut industry.

Desiccated Coconut:

The price range for desiccated coconut in the export market has been consistent for the fifth consecutive week at 80-95¢ per pound FOB.

Coconut Oil:

Crude coconut oil prices have slightly decreased to PHP 63.00-66.00 per kilo.
RBD coconut oil prices have also decreased to PHP 89.00-149.00 per kilo.

Shipping

Container spot rates hit the highest level this year, and more rate hikes are on the horizon as shipping companies continue to face significant challenges from the Red Sea and in meeting the soaring demand. The situation is further complicated by a shortage of containers in Chinese ports and congestion at ports, which is causing additional delays and driving prices up.

Summary

The long-term outlook is still worrying from a supply stance, with La Nina weather patterns expected to affect crops into 2025. Suppliers’ capacity will affect prices, which are forecast to go higher by the end of the year and into 2025. With Shipping costs also increasing.