Market Update 21st October 2024

Price Movements in the International Coconut Market 

Coconut oil in Rotterdam traded at $1,718.50/MT CIF, a $7.50 rise from the previous week. The price of palm kernel oil followed a similar trend, increasing slightly by $0.50 to $1,541.50/MT CIF. Despite these upward adjustments, the coconut oil premium over palm kernel oil widened, reflecting a growing demand for coconut oil amidst relatively stable palm kernel oil prices.

Local Copra and Coconut Oil Prices on the Rise 

Crude coconut oil in the Philippines remained relatively stable, closing the week at ₱88.25-88.75/kilo, while RBD coconut oil prices were steady at ₱106.25-153.00/kilo.

Desiccated Coconut and Husked Nuts Markets Steady 

The desiccated coconut market has demonstrated stability for the tenth consecutive week, with export prices remaining constant at 80-125¢/lb FOB. Meanwhile, domestic prices experienced a slight increase, reaching ₱5,129-5,414 per 100 lbs. bag.

Export Challenges in the Coconut Sector 

Coconut product export volumes have declined compared to 2023. In October, coconut oil exports dropped by 80.7%, while copra meal exports fell by 44.4%.

The cumulative export figures for 2024 reveal a mixed picture. Coconut oil exports increased by 16.9% year-on-year, but desiccated coconut have suffered significant declines.

Future Outlook

The coconut oil industry is experiencing steady demand in international and domestic markets, leading to increasing prices for coconut products. Whether these price rises continue depends on whether manufacturers stick with coconut or move to cheaper alternatives as margins tighten.