Market Update 17th May 2024

The market for coconut oil in Rotterdam has seen no trades for ten weeks, with prices slightly changing from $1,360.00-$1,388.75/MT CIF in early May to a peak at $1,411.75-$1,426.75/MT CIF by week’s end.

Palm kernel oil exhibited a quieter market, with recent trades at $1,160-$1,165/MT CIF, showing slight price adjustments over the week.

The price premium this week of coconut oil over palm kernel oil stayed above $200

Desiccated coconut prices have remained steady at 80-95¢/lb FOB across the USA, Europe, and other regions.

However, local markets have seen price adjustments, such as decreased crude coconut oil prices from P67.00-69.75/kilo to P64.00-68.00/kilo.

Similarly, RBD coconut oil prices fell slightly from P91.50-150.75/kilo to P90.50-150.50/kilo.

Export Volumes of Coconut Products

The coconut export industry saw a 32.6% volume decline from 59,347 MT in April 2023 to 40,000 MT in April 2024, with Jan to April 2024 being 15% down Year on Year.

This drop in export volumes is worrying. One of the leading causes is weather-related disruptions, which have impacted coconut production and reduced the availability of raw materials for oil extraction​.

Noteworthy Developments in the Coconut Industry

Top Non-Traditional Coconut Exports: The top five non-traditional coconut exports in the Philippines for 2023 included hydrogenated coconut oil, coconut water concentrate, and glycerin. These products saw significant market shares in countries like the USA, China, Australia, and several European countries.

Additional News Highlights

EU Corporate Sustainability Directive

European trade associations have endorsed the EU Corporate Sustainability Due Diligence Directive (CSDDD). This new law aims to hold corporations legally liable for environmental and human rights issues, impacting all public and private companies with more than 1,000 employees and an annual turnover of €450 million. The directive emphasizes supply chain due diligence, reflecting Europe’s commitment to sustainability and ethical business practices.

Argentina’s Soybean Production Forecast

The USDA reports an expected increase in Argentina’s soybean production for 2024/25, estimated at 51 million MT. This rise is attributed to a larger second crop and expanded planted acreage. The increase in production is expected to boost both domestic use for biodiesel and export volumes as global edible oil supply constraints ease.

Record Sales in US Organic Market

The US-certified organic market achieved record sales of $69.7 billion in 2023, driven by price adjustments and consumer preference for organic products despite economic challenges. The produce category led the growth, followed by the grocery and beverage sectors, indicating a robust demand for organic goods.