Global Coconut Market Update – 4th August 1015 – Price Stability Amid Strong Demand

Desiccated Coconut Maintains Steady Export Pricing

The international desiccated coconut market has remained steady over the past week, with export prices holding at $1.45-1.90 per pound FOB across all major markets, including the USA, Europe, and other destinations. This marks the ninth consecutive week of unchanged prices, signalling a mature market finding its level despite differing global economic conditions. The consistency in pricing reflects strong underlying demand fundamentals and well-managed supply chains from Philippine producers, who continue to dominate this specialised market segment.

Domestically, Philippine desiccated coconut prices showed a modest upward trend, with Manila market prices rising to ₱5,129-5,414 per 100-pound bag, up from ₱5,124-5,409 the previous week. This slight increase indicates that local processors are facing steady cost pressures, likely driven by the continued rally in copra prices that has persisted for several weeks.

Coconut Oil Prices Continue Upward Trajectory

The coconut oil market saw another week of rising prices, with European sellers closing at $2,992.50 per metric ton CIF for June/July positions, a $48.20 increase from the previous week’s $2,886.50. This upward trend brought coconut oil prices close to the psychologically significant $3,000 barrier, indicating strong global demand and limited supply. The price premium of coconut oil over palm kernel oil decreased slightly to $1,014.45 per metric ton, down from $1,071.50 the week before, but it remains substantially higher than historical norms.

Philippine domestic coconut oil markets followed the international trend, with crude coconut oil sellers ending the week at ₱155.50-157.25 per kilogram (VAT exclusive), up from ₱152.25-153.50 the previous week. RBD coconut oil prices also rose to ₱167.50-168.50 per kilogram from ₱164.75-165.50. The ongoing price rally reflects the underlying strength in copra prices, which continued their prolonged upward trend across all major production regions in the Philippines, with Quezon prices reaching ₱9,350-9,600 per 100 kilograms for sellers.

Industry Developments

The long-rumoured acquisition of Franklin Baker Co by Metro Pacific Agro Ventures for its desiccated coconut manufacturer with facilities in Laguna and Davao was formally announced last week. With both companies combined having the capacity to process over two million coconuts daily, this merger creates a formidable player in the market.