Market Update 25th November 2024

Firming Prices in the Global Coconut Oil Market

In mid-November, coconut oil prices in the Rotterdam market continued to firm up, reaching $1,876.25 per metric ton (MT) CIF, an increase of $38.75 from the previous week. While this indicates a strengthening trend, coconut oil is now priced lower than palm kernel oil, with the average discount widening significantly to $80.15 per MT. This represents a reversal from previous weeks when coconut oil had a price premium over its competitor.

The tropical oils market remains dynamic, with rising prices driven by strong global demand and limited supply.

Palm kernel oil led price gains, soaring by $162.67 to $1,966.00/MT CIF, while palm oil climbed $85.50 to $1,402.50/MT CIF. These developments highlight intensified competition in the lauric oils sector, signalling challenges for coconut oil exporters aiming to maintain their market share.

Philippine Coconut Product Exports: Steady Growth

The Philippines continued to see robust export performance in non-traditional coconut products. Coconut water led the pack, generating $13.026 million in revenue from shipments totalling 16,100 MT, with the USA accounting for 75.8% of exports. Other top earners included hydrogenated coconut oil and coconut water concentrate, reflecting diversified demand across markets such as the USA, China, and the EU.

Traditional coconut oil exports also maintained their growth trajectory, with cumulative shipments from January to November rising 1.5% year-on-year to 1.15 million MT. The revenue surged by 42.6% due to higher global prices. This underscores the resilience of the Philippine coconut industry in capitalising on favourable market conditions.