Global Price Trends & News 3rd September 2024

Global Price Trends

The global coconut oil market has seen a notable price increase after weeks of stagnation. Prices in Rotterdam rose from $1,600/MT CIF to $1,660/MT CIF, driven by gains in the palm oil market. The price premium between coconut oil and palm kernel oil has narrowed to $160.49/MT, down from $200 last week, reflecting tighter market conditions.

Domestic Market Shifts

In the Philippines, copra prices slightly declined due to reduced trading during a holiday week. Prices in Quezon dropped to P4,450-4,500 per 100 kilos, while prices in Bicol, Visayas, and Mindanao also saw a modest dip. Meanwhile, coconut oil prices continued to rise, with crude oil reaching P79.00-80.20 per kilo​(UWB 8-29-24).

Export Performance

Philippine coconut product exports in July fell by 6.8% year-on-year, with significant drops in coconut oil and oleochemicals. However, copra meal exports bucked the trend, increasing by 11.3%, mainly due to strong demand from South Korea. Despite these challenges, the overall export volume for 2024 remains up by 25.9% compared to the previous year​

Government Initiatives

The Philippine government has approved additional funding for the PCA’s massive coconut planting and fertilisation programs. To boost production, the PCA aims to plant 100 million coconut trees.

Shipping

The latest Drewry World Container Index is 3% down week on week to $5,181 per 40-foot container. Freight rates from Shanghai to Rotterdam and Genoa have decreased by 3% to $7,204 and $6,611 per 40-foot container, respectively.

While this decrease is positive, rates are still expected to remain high as the Red Sea crisis does not seem to be ending, and there have been more attacks on tankers recently.