Market Report

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. ...

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...