December 15, 2018
Demand for desiccated coconut has remained extremely weak since mid-year. Buyers
are not covering long in anticipation of further price decreases. Volume buyers are
looking to take advantage of current low prices by trying to lock in Q2 and 3 of 2019.
Despite the sluggish demand for DC (desiccated), demand for coconut flour, water and
milk remains strong.
Prices at current low levels are rarely seen for such a sustained period and we may not
see any upward trend until CNO (coconut oil) prices lead the way.
In a move to stimulate the Philippine coconut industry and to assist farmers the
department of agriculture is considering lifting a ban on the export of whole coconuts
which may open the way for an increase on exports to China.
No significant weather disturbances have been experienced in the Philippines lately. The
current monsoon season is one of the most insignificant in recent years.
Supply will remain positive through Q1 2019 and capacity should be more than sufficient
to match demand.