Market News Monday 16th September 2024

Coconut oil prices remain firm despite a lack of trading activity in key markets like Rotterdam. Sellers opened the week with quotes between $1,682.50 and $1,730.00 per metric ton (MT) CIF, with the market closing at a slightly higher range of $1,725 to $1,740/MT.

This firmness in prices may be attributed to supply disruptions in the Philippines caused by typhoon Yagi, which affected coconut oil production and export.

Palm kernel oil prices, meanwhile, fluctuated, closing the week between $1,420.00 and $1,507.50/MT, reflecting the volatile palm oil market. The price premium of coconut oil over palm kernel oil crossed the $200 mark, further widening the gap.

Coconut oil also commands a significant premium over palm oil, reaching over $600/MT, indicating strong demand for coconut oil compared to other tropical oils.

The industry has also seen strategic investments, such as Century Pacific Food’s acquisition of Coco Harvest Inc. for $40 million. This move aims to expand the company’s production capacity for high-value coconut products like coconut water and virgin coconut oil.

Additionally, Monde Nissin received approval for a significant investment in a coconut-based biscuit manufacturing plant in Davao, highlighting the growing demand for coconut-infused consumer products.

With price trends showing resilience and export markets continuing to expand, the coconut industry remains on a growth trajectory. However, challenges such as weather disruptions and the volatile nature of palm oil markets will continue to influence the industry’s dynamics in the coming months.