Update Asian Coconut situation

Over Christmas we saw typhoon ‘Nock-Ten’ hit the Philippines. This was the strongest typhoon to hit over the holiday period in fifty years. There has been damage to trees in the Luzon area which will likely result in short supply of coconut products at least till the middle of the year or later. It will take several weeks for the supply of raw nuts to dip but already prices are have started to strengthen.

 

Questions that will determine prices during 2017:

 

  • Will a push by organizations such as WWF see a shift away from the worlds most popular edible oil? Sustainability is rapidly growing as a key issue in this market.
  • Will demand for Palm oil, which is steadily increasing due to demand from emerging markets such as China, effect availability of other coconut products?
  • What about Biofuels? With OPEC reducing crude oil production will we see higher crude prices so pushing up demand for Biofuels of which Palm is the main one.

 

Back to the Nock-Ten typhoon; desiccated prices held firm over the holidays although most suppliers were withdrawn because of the typhoon. It will take a few weeks for the damage to the trees to reflect in a dip in supply of raw nuts. It is likely as companies return to work they will pick up any shorts for the first period. This period could sell out rather quickly as shippers reduce production expectations to reflect low raw nut supply.

 

Netra Agro sources coconut products like aseptic coconut milk, aseptic coconut water, coconut water concentrate and IQF Coconut dices and IQF Coconut chunks in Indonesia, Thailand, Sri Lanka, Philippines and Vietnam.

 

A resident walks near a passenger inter-island ferry Shuttle RoRo 5 that was swept ashore at the height of Typhoon Nock-Ten in Mabini, Batangas in the Philippines on 26 December

A resident walks near a passenger inter-island ferry Shuttle RoRo 5 that was swept ashore at the height of Typhoon Nock-Ten in Mabini, Batangas in the Philippines on 26 December – source

More