Market Update 2rd March 2025

Coconut oil prices have risen sharply, with CIF Rotterdam prices ranging from $2,060 to $2,140 per metric ton. This marks a continued upward trend from previous weeks. The rise in prices is attributed to tight supply conditions at the origin, as well as price increases in other vegetable oils, such as palm and soybean oil.

Notably, the price premium of coconut oil over palm kernel oil has exceeded $300 per metric ton, highlighting the strong demand for coconut oil.

Desiccated coconut prices have remained stable in the export market, ranging from $0.80 to $1.70 per pound FOB. In the domestic market, prices for 100-pound bags in Manila have slightly declined to PHP 5,223–5,513, reflecting a minor adjustment from the previous week. Nevertheless, overall demand remains strong, with key buyers from the USA, Europe, and Asia.

Several international developments currently influence the coconut market. Recently, Malaysia imported 660,000 coconuts to stabilise its local supply, highlighting supply constraints in key markets.

Meanwhile, India is projected to see its annual palm oil imports drop below those of soft oils for the first time, as refiners opt for cheaper alternatives like soybean and sunflower oil. These changes are expected to affect the demand for coconut oil further as manufacturers seek reliable, high-quality substitutes.

Looking Ahead: What to Expect for 2025

Ongoing price increases in coconut oil and stable demand for desiccated coconut are expected to keep the market competitive in the coming months. However, fluctuations in global vegetable oil markets, currency exchange rates, and supply chain disruptions will significantly influence price trends for the rest of 2025.