Dried Fruit

Dessicated coconuts: typhoon season may spell disaster

July 5, 2021 at 11:31 AM , Der AUDITOR
Play report as audio

MANILA/COLOMBO. Delivery and production delays are still rampant in the coconut producing countries in the Pacific. They are also causing the supply squeeze in Europe to get worse. Much will, in addition, depend on the approaching typhoon season. Spot market prices have, however, taken a surprising turn in Europe.

Typhoon season in third quarter

As Chelmer Foods reports coconut supplies are expected to become an issue in Indonesia. While demand is on the rise for coconut products in the country, supplies cannot keep up. Delays are now being reported. The situation is, however, not quite as bad as in the Philippines where shipments are four to six weeks behind schedule. Delays are expected to continue until the end of the year. The impact of the typhoon season will also prove decisive in the third quarter.

Nominal decline in prices

Raw material prices are said to have peaked in the Philippines in April and are currently levelling off. Issue, however, is that supplies are still cut short. This is prompting a more sustained supply squeeze in Europe as warehouses are nearly empty and there is no improvement in sight. Spot market prices in Europe have, nevertheless, declined nominally. Fine medium fat desiccated coconuts are trading at EUR 1.85/kg FCA Spain.

Desiccated coconuts

Quality, producing country

EUR/kg

Fine, low fat, Indonesia

1.36

Fine, medium fat, Indonesia

1.85

Fine, high fat, Sri Lanka

2.75

Organic, fine, high fat, Sri Lanka

2.85

FCA Spain

Excess coconut oil supplies in Sri Lanka

As the prices for coconut oil have tumbled in Sri Lanka's domestic market other coconut related products are trading lower. Issue is that large volumes of coconut oil were imported in May and in June, which has now left the country confronted with excess inventories. Suppliers are forced to sell at lower prices at a loss. Fresh and desiccated coconuts are, therefore, trading lower. Market players also anticipate a rise in production. The lack of containers, however, remains a problem as freight charges are still extremely high.

 

View more
price chart, desiccated coconuts, Sri Lanka
price chart, desiccated coconuts, Indonesia
price chart, desiccated coconuts, Philippines 
price chart, coconut oil, Indonesia
more price charts

Attached Files

File icon
price chart dessicated coconuts Indonesia

View related articles

Go to the News Overview
Nuts
Apr 18, 2024
BRUSSELS/REUS. Imports from Russia may have declined sharply for pine nuts since 2022, yet the country still holds a key position in the EU. Global production fell sharply in 2023/2024.
Nuts
Apr 18, 2024
ORDU. Not only the TMO but also Ferrero have jumped into action regarding hazelnuts after weeks of speculation.
Dried Fruit
Apr 16, 2024
SACRAMENTO/SANTIAGO. Prospects are highly encouraging for prunes in California. Weather conditons are ideal for the crucial bloom phase and the quality of the crop should be good.
Dried Fruit
Apr 16, 2024
AYDIN. As the current crop is nearly sold out and trading is becoming increasingly subdued for dried figs attention has shifted towards the new season. Weather conditions could hardly be better.