Coconut Market Newsletter — This Week 10th June 2026

The Earthquake off Mindanao

The week begins with the impact of a magnitude 7.8 earthquake offshore Sarangani, Philippines, which occurred at 07:37 PST on Monday, June 8. The quake caused significant damage across Mindanao, affecting areas such as General Santos, Sarangani, South Cotabato, and Davao Occidental. Initial reports sadly indicate casualties, injuries, displacements, and damage to homes, public facilities, and schools. Aftershocks continue to pose operational risks.

In the coconut industry, factories in affected zones typically close for two to three days to allow engineers to inspect infrastructure, address visible damage and cracks, check machinery alignment, electrical systems, and ensure worker safety before resuming operations.

The immediate market consequences are expected to be logistical disruptions—such as delayed trucking, plant inspections, and temporary closures at ports and warehouses in southern Mindanao.

Sustainable Coconut Gathering – Europe 2026

TM Duche was excited to attend the Sustainable Coconut Gathering in Chester this week. We have been leading efforts in this area. The Sustainable Coconut Partnership serves as the worldwide platform for coconut sustainability and is a multi-stakeholder initiative dedicated to developing a responsible and resilient coconut industry. Its goal is to address a generational sustainability challenge affecting millions of coconut farmers.

To learn more or perhaps join the Sustainable Coconut Partnership, visit https://www.coconutpartnership.org

Coconut oil

Coconut oil continues to be the weakest segment in the coconut market. The latest UCAP weekly bulletin reports European coconut oil prices at US$1,990–2,155/MT CIF, with the nearest forward shipment averaging US$2,073.40/MT, a decrease of US$38.30 from the previous week. The PCA daily sheet for June 8 shows Europe coconut oil at US$1,910/MT, indicating the softer market trend persists into the new week. Domestic Philippine crude coconut oil is priced at ₱100.80–133.28/kg VAT-inclusive, while RBD coconut oil ranges from ₱138.88–145.60/kg. The downward pressure is driven by weak forward buying, increased origin supply, and the shrinking spread against palm kernel oil. UCAP notes that Rotterdam activity was uneventful, with buyers mostly sidelined and deferred coconut oil positions falling below US$2,000/MT. The premium of coconut oil over palm kernel oil has mostly disappeared and, in some cases, has shifted into a discount. This is significant for buyers sensitive to substitution: unless lauric oil demand rises, CNO may need to remain competitively priced versus PKO to maintain volume.

Desiccated Coconut

Desiccated coconut remains more stable internationally but softer locally. Export prices hold steady for 16 weeks at 109–190 cents/lb FOB, with UCAP’s weekly average at 144 cents/lb FOB for USA, Europe, and others—unchanged but lower than 168.33 cents a year earlier. Locally, prices in Manila slightly declined to ₱5,546–5,840 per 100-lb bag, with the weekly average dropping ₱12 to ₱5,693. Exporters resist price cuts, while local replacement costs decrease.

Local Copra Prices  

Copra continues to show weakness in the raw material supply chain. On June 8, PCA’s average millgate copra price was ₱45.84 per kilogram, a decline from ₱49.95 last week and significantly below last year’s ₱73.21. Farmgate prices averaged ₱37.57 per kilogram, dropping ₱3.19 from the previous week and nearly ₱20 below last year. UCAP’s weekly provincial table also indicated sharp decreases in Quezon, Visayas, and Mindanao, driven by lower coconut oil prices and better nut availability.

Container Shipping

Container freight costs are once again a financial concern for coconut exports to Europe. Drewry’s latest World Container Index shows a 25% increase for Shanghai–Rotterdam, now at US$3,579 per 40ft container, and a 20% rise for Shanghai–Genoa, now at US$5,089 per 40ft. Early peak-season demand, elevated FAK rates, PSS implementation, and Red Sea diversions are supporting these rates. For Philippine shippers, the message is clear: even if product prices weaken, the higher freight costs can help offset the delivered Europe replacement costs.

Overall, Coconut oil remains under downward pressure, desiccated coconut is stable internationally but losing support domestically, and the earthquake adds a short-term operational risk premium in Mindanao while factories complete safety checks.