Coconut Market Newsletter – Late May 2025 Update

Desiccated Coconut Prices Hold Firm

Desiccated coconut prices remained steady for both the U.S. and European markets at 145–185¢/lb FOB, continuing their strong run since late 2024.

Local Philippine prices also held ground with Manila sellers quoting ₱5,016–₱5,295 per 100 lb bag, showing minimal fluctuation from the previous week. This stability comes amid solid global demand and seasonal planting initiatives across the Philippines to strengthen long-term coconut supply chains.

Coconut Oil Prices Push Higher

Coconut oil in Rotterdam traded between $2,613.50 and $2,800/MT CIF, slightly increasing from the prior week’s range of $2,535–$2,800. This firming is driven by broader strength across vegetable oil markets—especially palm and soybean oil—and improving copra availability.

While near-term prices rose, a slight easing trend was observed in deferred positions due to anticipated supply improvements.

Indonesia Eyes Export Controls Amid Soaring Prices

Indonesia is considering imposing an export levy on whole coconuts to address domestic shortages and rein in prices. Local processors have been forced to cut production as raw coconut prices spike. The levy aims to prioritise local industry while selectively permitting exports. In Q1 2025 alone, Indonesia’s coconut exports jumped 146% year-on-year, with China absorbing the vast majority.

U.S. Lauric Oil Imports Decline

U.S. imports of lauric oils fell by 12.7% in February compared to last year. Coconut oil comprised over half the volume, with the Philippines supplying 52.1% of total shipments. Palm kernel oil imports from Indonesia dropped steeply, reflecting reduced availability and changing trade dynamics.

China unveiled a national action plan on edible oil safety, increasing inspections across domestic and imported supply chains.