Market News Update 8th June 2024

Shipping

The freight rates from China to Europe are expected to reach $10,000 per 40-foot container by next month.

Additionally, high interest rates and labour market concerns are expected to curb consumer spending, potentially leading to a decline in shipping volumes.

Despite recent price inflation, Analysts predict that the price bubble will burst in the second half of 2024. The current price increase, driven primarily by capacity shortages and an unexpected demand increase, lacks support from robust underlying demand.

International Prices

Coconut Oil:

In Europe, sellers are offering Coconut Oil at a price range of $1,405.00 – $1,455.00 per MT CIF. 

Desiccated Coconut:

USA, Europe, Others: 80.00 – 110.00 ¢/lb FOB.

Prices were 76¢ in June 2023.

Market Trends

The local coconut oil market experienced an upward trend this week. Crude coconut oil prices increased slightly, with sellers adjusting prices to PHP 64.00 – 66.00 per kilo. RBD coconut oil also saw a minor increase, ending the week at PHP 89.50 – 149.00 per kilo.

This week’s price movements indicate a firming trend in the coconut product markets, both internationally and domestically, signalling potential opportunities and challenges ahead for stakeholders.

We are seeing demand potentially outstrip supply for Q4 so we recommend ordering as soon as possible to ensure supply.