Coconut Market Newsletter Monday 20th July 2026

The coconut market strengthened again this week, with coconut oil prices recovering after several weeks of softer trading. Firm demand, improving sentiment across the wider vegetable oils sector and higher copra prices in the Philippines all contributed to the stronger pricing. While palm oil and palm kernel oil prices also increased, coconut oil stays competitively priced against palm kernel oil, helping to keep buying interest from food and oleochemical manufacturers.

Desiccated Coconut

Export quotations continue at 109-190 US¢/lb FOB, unchanged for 22 consecutive weeks,(see Notes)  providing processors with welcome price stability despite volatility elsewhere in the coconut complex. Domestic Manila prices edged slightly higher to ₱5,537-5,844 per 100 lb bag, reflecting stronger copra costs rather than increased export demand.

Coconut Oil

European coconut oil values went up during the week, with sellers moving from around US$1,920/MT CIF early in the week to US$1,985-1,990/MT by Friday. The UCAP weekly average increased to US$1,956.67/MT CIF, up US$66.67 from the previous week.

The market saw renewed buying interest after several weeks of declining prices. Coconut oil continues to trade at a discount to palm kernel oil, although the prices narrowed compared with previous weeks as palm kernel oil also strengthened. UCAP notes that the recovery was driven more by improved market sentiment than by physical demand, suggesting buyers remain cautious while monitoring global vegetable oil developments.

Philippine Copra Market

Domestic copra prices rallied strongly for the third consecutive week.

• Quezon: Sellers increased to ₱5,550-6,100 per 100 kg
• Bicol, Visayas and Mindanao: Sellers reached ₱6,150-6,800 per 100 kg, breaking above the ₱6,000 level for the first time in several weeks.

Higher raw material costs pushed local crude coconut oil prices to ₱100-115/kg, while RBD coconut oil increased to ₱116-127/kg.

Vegetable Oil Outlook

Vegetable oil markets strengthened this week.

Palm oil recovered alongside stronger soybean oil sentiment, with the US Iran ‘war’ restarting over the past few day and with no end in sight and continuing uncertainty surrounding global biofuel demand. Chinese soybean imports reached another record in June, ensuring abundant feedstock availability, although weather concerns in North America continue to support soybean futures. These developments should keep edible oil markets well supported during the coming weeks.

Container Shipping

Container freight rates remain elevated, although the rapid increases seen over recent weeks are beginning to moderate.

According to Drewry’s 16 July World Container Index, the composite index slipped 2% to US$4,547 per 40-foot container, ending a ten-week rally. On Asia-Europe services, Shanghai-Rotterdam declined 1% to US$4,873 per FEU, while Shanghai-Genoa eased 3% to US$6,300 per FEU.

Drewry also reports that congestion at major European ports is beginning to ease, with waiting times at Genoa falling significantly. Despite the slight correction, freight levels remain historically high and are still being supported by capacity management, geopolitical risks around the Middle East and continuing uncertainty over global trade policy. Drewry expects freight rates to remain broadly stable during the coming week.

Market Outlook

The coconut market has regained positive momentum. Rising Philippine copra prices are providing firm support to coconut oil, while export prices for desiccated coconut remain stable at attractive levels. With vegetable oil markets generally firm and shipping costs still elevated despite this week’s modest correction, buyers are likely to continue covering near-term requirements cautiously. Unless there is a significant improvement in coconut supply from the Philippines, the market appears well supported through the remainder of July.

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 its market forecasts, as it is the only available resource. We also pass this information on as part of our many information sources, noting that we do not have access to private trades beyond our own.