Market Update 12th August 2025 – Prices for Desiccated Coconut Remain Steady & Oil Softened Slightly

Desiccated Coconut

Export FOB prices for desiccated coconut remain steady, holding firm in the US and Europe at 145–190 ¢/lb for this tenth consecutive week.

Locally in Manila, FOB prices for a 100‑lb bag have edged up to ₱5,189–5,477, slightly higher than the previous week. This indicates sustained, albeit modest, upward momentum in local demand or supply constraints.

Coconut Oil

Internationally, coconut oil CIF prices in Rotterdam have softened slightly, closing between US $2,850–2,995/MT, with the nearest positions (e.g., June/July) around $2,995, tapering down to $2,850 for December/January 2026 deliveries.

Domestically, crude coconut oil sellers quoted ₱150.00–155.00/kilo while RBD coconut oil was quoted at ₱167.00–168.50/kilo, both slightly lower than the prior week.

Container Shipping Costs: Asia to Rotterdam

Drewry’s latest World Container Index (WCI) as of the week ending 7 August 2025 shows the composite rate falling 3%, to US$2,424 per 40-ft container.

This follows a volatile period after earlier tariff-driven rate surges; transpacific routes also declined this week, with Shanghai–Los Angeles down 4% to approximately $2,534/FEU and Shanghai–New York down 7% to $3,826/FEU.

The outlook forecasts further rate softening into the second half of 2025 due to eased supply–demand dynamics.

The Fall of the Philippine Peso at the beginning of August

The Peso’s sharp plunge to PHP 58.186 per US$1 on August 1, 2025—its lowest level in 29 months, translates into a tangible advantage for coconut exporters. As a primary source of agricultural export revenue, coconut products benefit from higher peso returns when priced in dollars.

A weaker peso effectively raises earnings when converted into local currency, providing an export windfall. This feeling of “foreign exchange gain” boosts more substantial financial margins in a globally competitive market.

Cost Pressures on Imports and Inflationary Risks

However, this currency depreciation comes with a flip side. The coconut industry also relies on imported inputs—such as packaging materials, equipment, and agricultural inputs—that become significantly more expensive in Peso terms.

Rising import costs can squeeze margins unless exporters successfully pass those costs on. This dynamic mirrors the broader pattern observed in agriculture: while currency depreciation boosts export earnings, it simultaneously increases inflationary pressure by raising the price of imported goods.

Strategic Considerations Amid Supply Constraints

In summary, a weaker Peso is a boon for export revenues, helping increase peso-equivalent earnings, but rising import costs and supply challenges temper those gains.