Market Update Monday 23rd September 2023

The price of coconut oil has increased slightly, while prices for palm kernel oil and copra have remained relatively stable. In the European market, coconut oil prices have ranged from $1,723.50 to $1,750.00 per metric ton (CIF) in recent weeks, with limited participation from Philippine sellers as the typhoon season disrupts production and manufacturing.. As a result, demand has been cautious, leading to limited trading activity.

Desiccated coconut prices for the U.S. and European markets have held steady, ranging from 80¢ to 125¢ per pound (FOB). This marks six consecutive weeks of stability, reflecting consistent demand despite broader market fluctuations. Similarly, domestic prices for copra and coconut oil have increased, with crude coconut oil prices reaching ₱84.30 to ₱85.50 per kilo and RBD coconut oil increasing to ₱128.00 per kilo.

In the Philippines, regional price disparities continue to highlight the influence of geography on pricing. Quezon and Mindanao have shown strong price movements, with copra prices in the Quezon area ranging from ₱4,650.00 to ₱4,750.00 per 100 kilos, and in Mindanao, prices are higher, ranging from ₱5,100.00 to ₱5,200.00.

Non-traditional products such as coconut water, virgin coconut oil, and fatty acid distillates have performed strongly, particularly in the U.S. and European markets.

The Philippine coconut industry has been making progress with sustainability projects. Cargill’s CocoGrow Project, which was launched in Sarangani, aims to revitalise local coconut farms by planting 75,000 high-yield coconut trees across 535 hectares. This initiative focuses on smallholder farmers, half of whom are women, and aims to improve livelihoods while promoting sustainable practices.

Coconut product prices will continue fluctuating in the coming months due to international demand and regional environmental factors. Monitoring market movements closely is important, especially as weather disruptions in key production regions could impact supply.