Market Update 29th July 2023

International Pricing Trends

Coconut Oil Prices:

In Europe, coconut oil prices have slightly increased, with sellers offering $1,482.50 per metric ton CIF, up from $1,453.85 the previous week. Last year, prices were significantly lower at $1,047.20 in July 2023

In the Philippines, crude coconut oil prices have surged. The market opened at PHP 72.50-73.50 per kilo and progressively increased to PHP 74.00-75.50 by the end of the week. RBD coconut oil prices followed a similar trend, closing at PHP 96.00-152.00 per kilo.

Desiccated Coconut:

For the fifth consecutive week, the export market price for desiccated coconut has remained stable at 80-105¢ per lb FOB.

However, local market prices slightly decreased to PHP 5,255-5,547 per 100 lbs bag from the previous week

Shipping

Shipping continues to be a major headache for all industries, with spot freight rates surging by around 105% in the last three months. A significant shortage of containers is also causing disruption to industries ranging from agriculture to automotive.

Also, despite objections from major container lines, the US Federal Maritime Commission (FMC) has ruled that liner operators cannot refuse to move containers already booked based on “business decisions.”

The Biden administration passed the Ocean Shipping Reform Act (OSRA) in 2022 to assist US exporters who were facing challenges in securing space for their shipments. This move was made in response to pleas from US shippers who encountered difficulties in securing slots due to logistical bottlenecks and increasing freight costs during the COVID-19 pandemic.

The Red Sea crisis shows no sign of ending, so shipping times will continue to take longer for markets that rely on the Suez Canal transits in the coming months.