Market Report

As we moved through Q2, we began to see an improvement in supply. Crops finally showed signs of recovery after the sustained low yields that affected the market throughout 2024 and into early 2025, largely due to the 2023/2024 El Niño season. Demand remains strong, and pricing continues to hover near historic highs. Shipping faced some disruption during Q2 following the implementation of U.S. tariffs. This caused some shipment cancellations and blank sailings early in the quarter, followed by a sudden surge in demand and rate hikes toward the end of Q2. Thankfully, shipping conditions now appear to be stabilizing,...

Crops and Supply: The 2023-2024 El Nino season continues to wreak havoc on supply.  Many forecasts are suggesting that supply issues are likely to continue through Q3 2025.   There has been a diminished size of nuts and lack of overall crop yields.  This has made it challenging for the mills to secure supply to maintain production capacity necessary to catch up on the backlog of orders from 2024.  Demand continues to surge, driving up pricing to unprecedented levels.        Shipping and Transit Times: Shipping rates drop after the typical rate increases leading up to the Chinese New Year. Rates are...

As we have closed out 2024, the effects of the El Nino Season that extended from last half of 2023 through the first half of 2024 have been fully realized. In many regions, coconut yields have been halved in their bunches and in their size.  Forecasts project the effects will be felt through Q1, as such supply shortages are likely to extend into 2025 Q2.  In Q4 2024, SE Asia experienced several typhoon related events, causing even more of a strain on an already tight supply.  Typhoon season is nearly over as it usually ends December, however, the last major...

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. ...