Latest Market News April 23rd 2024

The Weather

The weather has been in the news in the past couple of weeks. Massive storms in the Gulf, including the flooding in Dubai, have received extensive social media coverage.

There is a report that should be on your radar, predicting a 60% chance of the US experiencing the hottest summer ever. This is due to a transition from El Niño to La Niña by June-August 2024, a shift that could significantly impact various industries. 

The UK experienced the wettest 18 months since records began in the 1800s. This has resulted in a decline in UK agricultural production.

The only good news is that more rain is forecast in Panama, meaning the Canal can return to full capacity, which is good for East Coast US shipping.

The Philippines

In the Philippines, coconut oil exports are projected to drop by about 21% to 900,000 metric tons in 2024-2025 due to El Niño affecting production in 46 provinces, according to the United States Department of Agriculture-Foreign Agricultural Service in Manila (USDA-FAS Manila),

This coconut shortage will impact the oil mill supply in these affected areas.

All this means costs are rising from oils to desiccated, and we are seeing high demand across the market with lots of last-minute scrambling for products.

Given the current circumstances, we anticipate these challenges persisting for Q3 and Q4 this year. This underscores the importance of proactive measures, such as booking your positions early and planning for potential delays in production and shipping, to stay ahead of the game.

As always, we suggest you get your order done sooner rather than later. And plan to even order slightly in advance to ensure on-time deliveries.