Market Report

Supply: Over the last few months, the affects of 2023 El Nino season has started to show.  As the effects of the drought take about a year to come to fruition, crop yields have begun to slow, and expectations are that shortages will continue throughout 2024 and well into 2025.  In the Philippines, typhoon season is well under way and there have been a few storms that have caused production disruptions already. Pricing: Over the last couple of months, we have seen large increases to pricing, approaching highs not seen since the shortages caused by the 2009/2010 El Nino season. ...

Supply remained relatively stable through Q2.  However, the Philippines was hit in May by its first larger typhoon of the season.  Some mills were affected by flooding which caused disruptions to production at the mills for the week following due to power outages throughout the region.  Many mills, already behind on shipments continue to play catch up and bookings are already extended out well into 4th quarter. We are now a couple months into rainy season in the Philippines (May-November) but the effects of El-Nino throughout much of 2023 and through May 2024 are yet to be seen, as all...

After a slow 2023, we continue to see a shift to a more regular demand through Q1 2024.  As for supply, El-Nino has already affected some regions, already noticing lower crop yields, with many regions projected to experience the effects of El-Nino later in the year and into 2025.        Things to watch for in 2024 Q2: Pricing has already increased through Q1, and we expect Q2 to stay much the same course.  Current forecasting models are predicting the effects of El-Nino to be more pronounced in many more major growing regions as we move into Q3-Q4. As such, we...

Happy New Year to all our readers! Looking back on 2023, we begin this year where 2022 left off:   Instability in markets persisted due to the on-going war in Ukraine. Monetary policy makers around the world would continue to raise interest rates in efforts to best curb inflation, decreasing consumer confidence and behaviours.  For much of the year, many buyers were still working through surplus inventories left over from 2022 all the while yields from major coconut growing regions remained strong.  The year ended with very little disruption as it was a season marked by less than typical storm activity. ...