Market Update 20th Jan 2025

Price Trends for Desiccated Coconut

In the international market, the export price of desiccated coconut remained stable, ranging from $0.80 to $1.50 per pound FOB, with no significant changes in recent weeks. Locally, prices showed a modest recovery, moving up to PHP 5,248.50–5,540.00 per 100-pound bag from the previous week’s range. The USA, Netherlands, and Russia lead in consumption, collectively accounting for over 50% of export volumes.

Coconut Oil: A Market Under Pressure

Coconut oil prices have seen a slight downward adjustment on the international stage. The Rotterdam market reported a price dip, closing at $1,950–1,982.50 per metric ton CIF. The broader vegetable oil market’s bearish sentiment, influenced by weak palm oil performance, contributed to this easing. However, coconut oil maintained a premium over palm kernel oil, reflecting its higher perceived value and diverse applications in the food and personal care sectors.

In the domestic market, coconut oil prices were firm, with crude coconut oil offered at PHP 110–115 per kilogram, while RBD coconut oil fetched PHP 122–155 per kilogram. This price stability underscores the tight supply dynamics in the Philippine market, which is a leading global exporter of coconut oil.

Export Trends: A Positive Outlook

Philippine exports of coconut products surged in November 2024, with coconut oil being a significant contributor. Exports reached 123,398 metric tons; The European Union and the USA were the largest importers, underscoring their reliance on the Philippines.

Desiccated coconut exports also increased year over year, rising by 14.2% to 15,079 metric tons. This growth reflects robust international demand despite broader market challenges, including fluctuating exchange rates and raw material availability.

Shipping

It has been reported by theloadstar.com that Yemen’s Houthi rebels have announced a halt to attacks on non-Israeli shipping in the Red Sea. They will now limit their operations to vessels owned by Israeli entities or flying the Israeli flag. This decision follows the implementation of a ceasefire agreement and aims to reduce disruptions in this critical maritime corridor.

Despite this announcement, industry experts advise caution. The Houthis have indicated that any perceived aggression from nations such as the United States or the United Kingdom could lead to a resumption of attacks on vessels associated with these countries. This conditional stance adds uncertainty for international shipping companies contemplating a return to Red Sea routes.

The shipping industry now faces the complex challenge of recalibrating operations in response to these developments. Analysts anticipate potential difficulties, including schedule disruptions and port congestion, as carriers adjust to the new security dynamics. Additionally, the expected increase in available shipping capacity may put downward pressure on freight rates, further complicating the economic landscape for global trade.

While the cessation of attacks on non-Israeli vessels is a positive step toward stabilizing maritime activities in the Red Sea, the situation remains fluid. Shipping companies, insurers, and global trade stakeholders must remain vigilant, continually assessing risks and adapting strategies to navigate the changing security environment in this vital region.

Source https://theloadstar.com/houthis-to-cease-attacks-on-non-israeli-shipping-in-red-sea/