Coconut Market Update 3rd June 2025

Desiccated Coconut: Prices Steady, But Export Volumes Down

Export prices for desiccated coconut held steady for the eighth consecutive week at 145 to 185 cents per pound FOB, supported by consistent demand in traditional markets like the US and Europe. However, in the domestic market, prices declined slightly to PHP 5,007–5,286 per 100-lb bag, signalling some softness in local trading. More concerning is the export data: no official desiccated coconut export figures were available for May, but year-on-year comparisons suggest a sharp drop in total coconut product exports by 71.7% in volume and 26.2% in value.

Coconut Oil: Strong Prices Despite Sluggish Demand

Coconut oil maintained its position as one of the better-performing tropical oils in late May, with Rotterdam CIF prices ranging from $2,645 to $2,800 per metric ton. While sellers opened the week with firm offers tracking gains in competing vegetable oils, the momentum faded by week’s end, driven by reports of improved supply at origin and limited buying interest. Despite this cooling, the price premium over palm kernel oil expanded to $947.50, pushing the weekly average premium to nearly $900 per metric ton, indicating coconut oil’s continued strength relative to other oils.

Container Shipping :Prices are Volatile

Container prices from Asia to Europe, from Drewry’s World Container Index (WCI), have experienced significant volatility over the past month. As of May 29, 2025, the WCI rose sharply by 10%, reaching $2,508 for a 40-foot container, after a period of decline earlier in the month. Specifically, freight rates from Shanghai to Rotterdam dropped by 7% (a decrease of $156), bringing the total to $2,046 per 40-foot container. Additionally, rates from Shanghai to Genoa decreased by 4% (down $123), resulting in a price of $2,766 per 40-foot container.

Despite these recent fluctuations, the composite WCI remains 80% below its peak during the pandemic but is still 46% higher than the pre-pandemic average from 2019. This indicates ongoing market adjustments following the severe disruptions of the past few years. Drewry expects that rates will become less volatile soon, as carriers adjust their capacity in response to a lower volume of cargo bookings from China.