Market Update 4th November 2024

Prices for coconut oil started the week strong, ranging from $1,745 to $1,755 per metric ton (MT) CIF, but declined by the end of the week to between $1,710 and $1,720 per MT CIF. This decrease is attributed to a drop in the price premium of coconut oil over palm kernel oil, which fell significantly, leading to a narrower price spread.

The desiccated coconut market remained steady, with export prices holding at 80-125¢/lb FOB for the 12th consecutive week. Meanwhile, local prices slightly increased, climbing to P5,344.50 per 100-lb bag, signalling continued strength in the domestic market.

Global Developments: Coconut Oil Mission in India and Coconut Sales in Sri Lanka

In broader developments, India has launched a National Mission on Edible Oils-Oilseeds, which is expected to impact the coconut industry by enhancing domestic oilseed production. From 2024-2031, this mission aims to achieve self-reliance in edible oils. While the focus is on primary oilseed crops like rapeseed and sunflower, the ripple effects on coconut oil demand and pricing may be notable.

Market Outlook

The tropical oil market continues to experience mixed trends, with coconut oil shedding $15/MT, while palm kernel oil and palm oil saw slight recoveries. Coconut oil’s price advantage over palm oil narrowed but remained significant at $509/MT. Despite the fluctuations, local coconut product markets remained steady, with prices for copra and coconut oil holding firm.

These movements reflect broader trends in both domestic and international markets, with ongoing factors of supply and demand influencing pricing and trade volumes. As global economic conditions change, the coconut industry must remain flexible to adapt to these shifts.