Global Coconut Industry Newsletter September 17, 2025

This week has seen lower prices generally in the broader vegetable oils market, although local coconut product prices in the Philippines have shown some firming trends. The industry continues to grapple with supply and demand shifts.

Prices for desiccated coconut in the international export market have remained steady for the third week in a row. Sellers in the USA, Europe, and other markets have kept their prices between 145.00 – 180.00 ¢/lb FOB. The average seller’s price is still 166.67 ¢/lb FOB, unchanged from last week.

However, prices for desiccated coconut in Manila have increased slightly, now ranging from P5,151.00 to P5,437.00 per 100 lbs. bag, up from P5,136 to P5,422 last week. This gives an average domestic seller’s price of P5,294.00, an increase of P15.00.

There is a potential that local prices to continue to rise in the short term.

Despite strong growth in Indonesian desiccated coconut exports, the Indonesian Coconut Processing Industry Association (Hipki) noted that companies relying solely on this product are more vulnerable to production shortfalls due to fresh coconut supply being diverted to direct exports, especially to China.

Coconut Oils

The Rotterdam market offers for nearby positions opened firmer, while forward positions were lower, ranging from $2,470 – $2,630/MT CIF for August/September through February/March 2026. Prices subsequently dropped, closing at $2,450.00 – $2,573.50/MT CIF. Specific closing offers varied, from $2,550/MT CIF for August/September down to $2,420/MT CIF for July/August/September, with buyers remaining cautious.

The price premium of coconut oil over palm kernel oil continued to show mixed trends, narrowing for forward positions and even flipping to a discount for December/January 2026 and beyond. The weekly average premium dropped significantly to $211.93/MT, down from $297.09 a week ago.

Despite this, tropical oils for the nearest forward shipment, including coconut oil, showed overall higher prices compared to last week, with coconut oil gaining $3.75 to reach $2,589.10/MT.

On the domestic front in the Philippines, coconut oil prices firmed up anew this week. Crude coconut oil sellers saw extended gains, opening firmer at P137.00 – P142.

Container Shipping

Asia to North Europe spot rates (Shanghai to Rotterdam) dropped again last week. Drewry’s World Container Index shows a 10% week-on-week fall to $2,143 per 40ft (FEU) on 11 September 2025, with the composite WCI at $2,044/FEU – marking a 13th consecutive weekly decline.

Drewry attributes the slide to fresh capacity outpacing softer demand on Asia to Europe routes. Although a slight increase in blank sailings has been seen ahead of China’s Golden Week, Drewry expects rates to ease slightly in the near term. For coconut shippers routing into Rotterdam, this suggests marginally better spot conditions into late September, although with continued volatility as carriers adjust capacity.

Note:

The Rotterdam market is rarely used nowadays. Most transactions are handled directly by major commodities traders, typically known as ABCD—Archer Daniels Midland, Bunge, Cargill, and Louis Dreyfus, with Wilmar also being a significant player. These firms buy directly from millers in the Philippines, thus bypassing the Rotterdam market. When we refer to a quiet market, it doesn’t necessarily mean no business is being done; rather, it is just not publicly disclosed. Therefore, it shouldn’t be seen as an indicator of the market’s overall health or future direction. The UCAP in the Philippines relies on this information for their market forecasts, as it is its only available resource, which we also pass on as part of our many information sources – we also do not have access to private trades other than our own.

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