Market Update 5th August 2024

International Pricing Updates

Coconut Oil: Sellers’ prices ranged from $1,507.50 to $1,535.00 per metric ton (CIF Europe), while buyers offered between $1,475.00 and $1,485.00 per metric ton. The market has been firm, with prices steadily increasing to close at $1,535/MT CIF.

Desiccated Coconut: Prices for desiccated coconut remained stable, with sellers in the USA, Europe, and other regions offering between $0.80 and $1.20 per pound FOB.

Philippine Coconut Exports Surge in June

Philippine exports of coconut products saw a significant increase of 67.2% in June 2024, reaching 220,157 MT in copra terms, compared to the same period last year. This growth was primarily driven by a sharp rise in coconut oil exports, which soared by 88.4% to 122,043 MT. Europe remained the largest market, absorbing 56.4% of these exports, followed by the USA, Japan, Indonesia, and Malaysia.

US Lauric Oil Imports Increase

The US reported a 23.6% increase in lauric oil imports in May 2024, totalling 67,600 MT. Coconut oil comprised 61.2% of these imports, with the Philippines being the largest supplier. The growth in lauric oil imports underscores the rising demand for these products in the US market.

Potential EU – PAH Olive Oil Ban

The EU is considering a regulation to limit polycyclic aromatic hydrocarbons (PAH) in olive oil. This could potentially result in a ban on products contaminated during processing.

The regulation, expected in September, aims to ensure food safety but may compel producers to significantly change their production methods. With record-low harvests last year, this additional need for investment poses a significant challenge to producers.

Shipping News

Drewry’s World Container Index decreased by 1% to $5,736 per 40-ft container this week. This decrease comes after a huge increase since May 2024 and could show a respite in increases. Drewry believes that spot rates have peaked, but continued shipping disruptions will keep a floor under the spot rates for some time.