COCONUT MARKET REPORT 21st May 2024

Last updated: 23 May 2024  |  133 Views  | 

COCONUT MARKET REPORT 21st May 2024

Dear Esteemed Partners,

The supply situation for raw coconut continues to worsen across all origins, resulting in significant increases in raw material prices. Desiccators and oil extractors are competing for the limited supply of nuts, exacerbating the issue.

Additionally, this scarcity has caused considerable delays in shipments, with lead times extending anywhere between 6 to 8 weeks.

The 2024 raw material supply has been severely impacted by the El Niño weather phenomenon, which brought extreme heat and dryness in 2023. We are experiencing similar conditions in 2024, and therefore, we can expect the 2025 crop to be similarly affected. Once El Niño ends, meteorologists predict a transition to the La Niña weather pattern in Asia, which brings heavy rains and flooding.

The extreme heat of El Niño (e.g., 45-52°C experienced in Thailand this year) makes it humanly impossible to harvest in such high temperatures. Conversely, the excessive precipitation, rain, and flooding associated with La Niña will further affect the crop and harvesting capabilities. This will coincide with a period of naturally low crop yield. However, the crop situation for 2024 is worse than usual, and we foresee further shortages in the future. The Philippines is largely offering shipments for September-October, whereas today Indonesia offering July onwards with very limited availabilities left for June.

Currently, stock levels for spot material in destination markets like Europe and North America are very low.
As we enter Q3 and Q4, periods of highest demand, we urge all partners to cover your requirements in advance to avoid stockouts or higher costs. It is crucial to secure your supplies now to prevent any disruption or increased expenses.

We are here to assist with any requirements you may have.

Thanking you
PANTHEON INGREDIENTS LLC

THE INFORMATION PROVIDED IN THIS REPORT IS AN EXPRESSION OF OUR CONSIDERED OPINION AND IS FOR INFORMATIONAL PURPOSES ONLY. TRADING AGRICULTURAL COMMODITIES INVOLVES RISKS AND READERS SHOULD DO THEIR OWN RESEARCH BEFORE MAKING A PURCHASE DECISION.

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