Markets Prices and Updates End August

Coconut Oil Prices

The prices on coconut oil continue to rise, and they are currently at the same level as of August 2018 in the Rotterdam marketplace, then the prices where on the way down, now they are on the way back up.

Coconut oil production is still limited across different countries, including the Philippines, Sri Lanka and Indonesia with new positions full till year-end in many cases.

We envisage that the prices will continue to go up and demand as limited supply fuel the markets. Many buyers have booked into the end of the year at agreed prices, those that haven’t will find themselves struggling in an inflated market to get raw materials. With many left without guaranteed orders in place, or with orders promised and delayed until 2021, this leaves the market open for lower quality suppliers to jump into the market, so it is definitely  “buyer beware” for the rest of 2020.

Desiccated Coconut Prices

Desiccated prices are unpredictable.  In some marketplaces they have levelled out on others it’s rising (Sri Lankan auctions continue to increase at the moment as an example)

The same situation with supply limitations and delays will end up dictating pricing in Q4 and no doubt with push it higher.

The last four months of the year, our positions are pretty much full, and we are now into taking orders well into Q2 2021.

Production

Production continues to be constrained in the Philippines with lockdowns in Metro Manilla having a knock-on effect, with other new requirements now in place and the availability of free testing for all keyworkers now in place.

The “Bayanihan to Heal as One Act” that was due to expire in June now effectively extended till September and probably further with cases on the increase and although rates are low the trend is not encouraging.

Shipping

Global Shipping is running with the delays occurring at some major hubs.

In summary, there have been no major changes from the situation in July, with some production delays getting better, and positions filling up or full for 2020. The supply of accredited raw materials is going to continue to face challenges in 2021.