Market Update 28th Jan 2025

Desiccated Coconut: Steady Demand and Export Growth

Prices for desiccated coconut have remained strong, with FOB rates ranging from $0.80 to $1.50 per pound in major markets.

In the domestic markets in the Philippines, prices have slightly increased in recent months, driven by limited supply and strong demand. Year-on-year exports of desiccated coconut in November 2024 rose by 14.2%, totalling 15,079 metric tons and exceeding monthly averages.

In December, we observed a year-on-year increase in exports for most producers. However, we have seen one major producer experience a decline in exports over the last two months of the year after laying off 3,200 staff at one of their factories. This situation has posed significant challenges for many customers, and we are noticing an increased demand for deliveries from new suppliers in the first quarter.

Coconut Oil: Volatility Amid Global Factors

Coconut oil prices have exhibited greater volatility. By early January 2025, FOB prices for coconut oil ranged from $1,950 to $2,000 per metric ton, reflecting a slight upward adjustment from late 2024. Exports were up from last November (which in 2023 was a slow month) but only up 4% from the previous month.

Global Shipping

The Houthis announced a halt to attacks on non-Israeli vessels in the Red Sea following a ceasefire in the Gaza conflict but warned they might resume if the U.S., U.K., or Israel engage in aggression. This has led to cautious optimism for trade resumption, yet shipping lines remain hesitant due to security concerns.

There are no announcements on route changes, but we have seen delays increase from 6 to 8 weeks due to the continued route change around Africa, container shortages, port congestion, and labour shortages in the Philippines Ports.