Prices at all origins seem to be firming up. The biggest rise this past week has been seen out of Sri Lanka, an origin which was previously declining in price has in the past week risen by USD100 to USD150/mt depending on the shipper. This we suspect is attributed to renewed demand from the Middle East which has only recently come out of their Ramadhan holidays and are now stocking up on all things food for the year end when weather becomes cooler and allows for storage. Also there is another Eid festival that approaches and coconut would be required during this festivities.
Philippine mills are very well over sold, having totally sold out their production capacities for August , September and much of October. Likely buyers who place orders today would see shipments taking place around November onwards. Prices are holding steady with news of mills now trying to raise prices in anticipation of the lean crop period that is about to take place.
Indonesian mills are now trying to raise prices as well due to the predominant poor crop this year. Statistics show that Indonesian desiccated coconut exports year on year have declined as compared with last year. Demand for Indonesian DC has risen, however the decline in exports is attributed to the poor crop situation. Like all other origins, Indonesia will go into lean crop as well in Q3 onwards. Mills are well sold out for August and much of September.
Vietnam prices have risen as well on the back of renewed activity out of Middle East and from heavy demand of its fresh nuts from China and neighboring Thailand.
It is normal that demand for DC and indeed all things food will peak during Q3 and Q4 of each calendar year and in line with this we expect prices for DC to firm up as well.