Desiccated Coconut – Desiccated Coconut continues to remain firm from all main origins – Philippines, Indonesia and Sri Lanka.
Q4 Prices from Philippines, per metric ton Cost & Freight to Main European Ports, range from $ 2250 – 2300 , Indonesia from $ 2175 – $ 2200 for DC Fine and Medium (High Fat) and circa $ 2600 from Sri Lanka for both grades. However, prices in Q1 of 2021 appear to be less than these levels by $ 100 – $ 125 but demand is steady which may result in firmness as we get nearer.
Trend : Firm
Weather in other growing regions of India has been favourable for the crop. Gujarat unfortunately had more rains in the last week. Thus, Black sesame market is up as the same is mainly sown in Gujarat.
Another short-term issue is unavailability of vessels/containers and increase in freights.
Demand – Most countries are on wait-and-watch more; trying to cover at any dip in the prices. Which seems like a good strategy right now. We still believe covering some part of your long-term needs at current prices is a good idea.
Supply – Reports suggest most African countries would have a lesser crop than previous year and thus Indian increase in crop would be balanced out (Unless, rains in next few weeks damage crops in other parts of India too). Local lockdowns in many parts of India might hamper some supply in short-term.
Demand and Supply seem to be nicely balanced out. The only question mark is “drop in consumption due to Covid and how long will it take for it to go up to pre-Covid levels”.
Trend – Stable to Bearish
Edible Solutions offer product from GFSI accredited processors in India and Nigeria. Please enquire. Price indiations are around $ 1650 levels on C&F per mt to European Ports.
The August position report released last Friday by the Almond Board has announced shipments of 193.05 mill lbs which is an increase of 30.7% over last August and a great start for the first report of the 2020 crop. The industry has been reducing prices in previous months to stimulate demand for the expected new bigger 3 billion lbs crop and many buyers have participated by covering short and long positions. August demand from India for instance was up by 105% vs last year, and China has also come back to the market increasing their purchases by about 50%.
Prices have firmed further after the report and since our last week’s update by approximately 8%; this sharp increase is also supported by the 88% rise in commitments bringing new crop closed sales to 37% (vs 25% at this time in 2019). With such a positive report, the industry’s confidence in their marketing ability continues strong and there is still demand from few markets such as China which will support this optimism.
On the other hand, the recent sharp devaluation of the GBP has also helped to push prices up in the short term and a no-deal Brexit is threatening to add import tariffs from the beginning of next year