Coconut Market Update 7th July 2025

Coconut Oil Markets Face Continued Pressure Despite Recent Stability

The coconut oil market showed mixed signals during the final week of June 2025, with European prices demonstrating resilience after a period of volatility. Rotterdam coconut oil offers closed at $2,637.50-2,797.50/MT CIF after experiencing initial weakness followed by a recovery. The market’s premium over palm kernel oil expanded significantly to above $1,000 across all positions, with the weekly average reaching $1,134.36/MT compared to $1,079.69 the previous week. This widening spread reflects the relative strength of coconut oil, despite broader pressures in the vegetable oil market.

In the Philippines, domestic coconut oil pricing remained stable with crude coconut oil sellers maintaining offers at P144.50-147.00/kilo throughout the week, while RBD coconut oil prices held steady at P156.60-164.00/kilo. The lack of buyer activity in the domestic market suggests continued caution among purchasers, likely due to the sustained high price levels compared to historical norms. The current domestic prices represent significant increases from June 2024 levels, when crude coconut oil was trading at P66.82/kilo.

Desiccated Coconut Maintains Export Stability Amid Market Challenges

The desiccated coconut export market demonstrated remarkable consistency, with prices remaining unchanged at 145.00-190¢/lb FOB for the fifth consecutive week. This stability contrasts sharply with the volatility observed in other coconut products, suggesting strong underlying demand in international markets. In May 2025, desiccated coconut was the only major coconut product to register growth, with overseas purchases at 14,809 MT slightly exceeding the previous year’s 14,518 MT. The domestic market for desiccated coconut also showed modest improvement, with prices increasing to P5,121-5,406 per 100 lbs bag.

Other News 

Century Pacific Food’s announcement of a PHP 4-5 billion capital expenditure program, including significant investments in coconut processing facilities, signals growing confidence in the sector’s long-term prospects. Combined with the government’s ambitious target of planting 100 million coconut trees by 2028, these initiatives suggest a focused effort to revitalise the industry and restore the Philippines’ position as a leading global supplier of coconut products.