Coconut Market News September 28th 2026

The coconut market presented a mixed picture this week. International desiccated coconut quotations remained stable, while Philippine domestic prices continued to edge higher. Coconut oil eased slightly in Europe but remained above US$2,000/MT.

Container freight offered some relief for European buyers as Asia-Europe rates continued to fall. However, intra-Asia freight reached another record high, underlining the importance of checking Philippine origin and trans-shipment costs rather than relying solely on the global index.

Desiccated Coconut

International desiccated coconut quotations remained at 109-190¢/lb FOB for the 32nd consecutive week.

UCAP’s representative seller average was unchanged at 135.17¢/lb FOB, equivalent to approximately US$2,980/MT before freight. This remains above the August average of 133.46¢/lb but is around 22% below the 173.96¢/lb recorded in September 2025.

The Philippine domestic market continued to firm. The Manila average increased by ₱18.50 to ₱5,806.50 per 100-lb bag, with the latest quotation range at ₱5,650-₱5,963.

Husked-nut prices also increased:

• Southern Tagalog rose to ₱10,500-₱12,000/MT.
• Southern Mindanao increased to ₱11,970-₱13,500/MT.

The divergence between stable export prices and rising Philippine replacement costs continues. Exporters have not yet adjusted the international range, but higher nut and domestic desiccated coconut values may reduce their willingness to offer discounts.

Lower European freight rates should improve landed costs, although higher regional shipping charges could offset part of this benefit.

Coconut Oil

European coconut oil softened slightly after the previous week’s recovery.

The nearest-forward seller average declined by US$11.50 to US$2,079.50/MT CIF. Business was reported at US$2,060/MT for second-quarter 2027 delivery, extending the return of visible trading activity for a second consecutive week.

Closing seller indications were approximately:

• US$2,077.50/MT for October/November
• US$2,075/MT for November/December
• US$2,065/MT for December/January
• US$2,062.50/MT for January/February
• US$2,060/MT for February/March through June/July 2027

Buyer interest remained concentrated in deferred 2027 positions, with approximately US$2,020 indicated for April/May and US$2,000 for May/June. Buyers were largely absent from the remaining 2026 positions.

The Philippine Coconut Authority’s daily report for 22 September placed European coconut oil at US$2,075/MT CIF and palm kernel oil at US$2,070/MT.

On UCAP’s weekly averages, coconut oil moved back to a discount of approximately US$33/MT against palm kernel oil, compared with a premium of US$32.67 the previous week. The shift reflects a firmer palm kernel oil market as well as the modest decline in coconut oil.

Philippine coconut oil prices moved higher. The weekly crude coconut oil average increased by ₱2.75 to ₱109.55/kg excluding VAT, while RBD coconut oil rose by ₱0.70 to ₱116/kg.

Copra and Raw Materials

Copra prices eased in some UCAP markets following the previous two-week rally.

The average Quezon seller price slipped by ₱20 to ₱5,675 per 100 kg, while the buyer average declined by ₱15 to ₱5,580.

In Bicol, the Visayas and Mindanao, seller quotations fell to ₱6,150-₱6,400 per 100 kg from ₱6,450-₱6,700 the previous week. Although this was a sizeable weekly reduction, prices remain above many of the levels seen during August.

PCA’s 22 September report placed the national average millgate price at ₱53.71/kg and the farmgate average at ₱40.62/kg. Both remain above their August averages but significantly below last year’s levels.

The immediate raw-material picture is therefore mixed. Copra has paused after its recent recovery, but domestic desiccated coconut and husked-nut prices continue to rise.

Container Shipping

Drewry’s World Container Index declined by 1% to US$4,468 per 40-ft container on 24 September. The reduction was driven by another fall in Asia-Europe rates.

For European shipments:

• Shanghai-Rotterdam declined by 4% to US$3,485 per 40-ft container.
• Shanghai-Genoa fell by 5% to US$3,835.

Drewry expects Asia-Europe rates to continue declining in the near term. Suez Canal transits increased from 41 in week 37 to 48 in week 38, restoring some effective capacity despite carriers announcing additional blank sailings.

The picture within Asia remains very different. Drewry’s Intra-Asia Container Index increased by another 6% to a record US$1,491 per 40-ft container. This was its fifth consecutive record week.

Typhoon disruption, congestion and the pre-Golden Week increase in demand have constrained regional capacity. Vessel waiting times reached approximately 83 hours in Shanghai, while rates on several China-Southeast Asia routes reached record levels.

For Philippine coconut exporters, falling Shanghai-Europe rates are encouraging but may not translate directly into an equivalent reduction in total landed costs. Higher feeder rates, trans-shipment charges and origin surcharges could absorb some of the saving.

Drewry expects 58 blank sailings across the major East-West trades between 28 September and 1 November. This represents an 8% cancellation rate, with 92% of scheduled sailings still expected to operate. Around 28% of the announced cancellations are on Asia-North Europe and Mediterranean services.

EU-Philippines trade agreement

The European Union and the Philippines have reached substantial agreement on a free trade agreement, clearing the way for formal conclusion of negotiations in the coming months.

The agreement is expected to improve market access, strengthen supply chains and create more predictable trading conditions between the two markets.

This is particularly significant for the Philippine coconut industry. Coconut oil generated approximately US$1.41 billion in revenue from EU imports in 2025, accounting for around 85% of the EU’s total coconut-product imports from the Philippines.

The eventual tariff, customs and regulatory provisions will require careful review, but the agreement could strengthen the long-term competitiveness of Philippine coconut products in Europe.

Other Coconut-industry News

The 2026 Coconut Philippines Trade Fair generated ₱309.57 million in sales, compared with ₱96.9 million the previous year. The event brought together 300 Philippine coconut enterprises and showcased products spanning food, beverages, personal care and sustainable materials.

Vietnamese coconut exports to the United States reached US$105.27 million during the first seven months of 2026, an increase of 28%. Coconuts have overtaken mangoes and dragon fruit to become Vietnam’s largest fruit and vegetable export to the US, accounting for 29% of the sector’s US sales. This highlights Vietnam’s growing position as a competitor in fresh and value-added coconut markets.

Market Outlook

Desiccated coconut remains stable internationally, but Philippine domestic costs continue to rise. This limits the scope for aggressive FOB reductions even as European container freight becomes more favourable.

Coconut oil remains above US$2,000/MT, with visible trading concentrated in deferred 2027 positions. The market currently appears rangebound, with buyers reluctant to chase nearby offers and sellers maintaining support around US$2,060.

For European buyers, falling long-haul freight rates provide an opportunity to review landed replacement costs. However, Philippine feeder and trans-shipment charges should be checked carefully because intra-Asia freight remains exceptionally firm.

Overall, the market continues to send mixed signals: international desiccated coconut prices are stable, domestic replacement costs are firmer, coconut oil has eased modestly, and freight conditions vary sharply by trade lane.