The situation in the Philippines continues to worsen. Some desiccators are out of the market until further notice as they are not able to meet production targets due to a drop in husked nuts deliveries. Coconut lean season has already started, and husked nut prices have increased. Further to this, the local Peso has continued to appreciate against the dollar.
However, the main problem is the increase of positive cases of COVID-19 in Candelaria and nearby towns. Husked nut suppliers are frightened to deliver out of fear of getting infected by the virus. Worker’s attendance has dropped significantly either for fear of the same or due to not being allowed to report to work as they live in an area with positive cases.
The market is firm and nearby deliveries for this quarter will need to be monitored closely as delays are expected and inevitable. We recommend booking requirements for the first half of next year now to ensure a production slot can be secured in time.