Market Update 22nd July 2024

International Prices

Desiccated Coconut

The international price for desiccated coconut remains steady across different regions. Sellers in the USA, Europe, and other areas are quoting prices in the range of 80.00 to 105.00 cents per pound FOB

Coconut Oil

The market for coconut oil has seen notable activity. In Rotterdam, trades for September/October were reported at $1,375/MT CIF, with sellers quoting higher prices for subsequent months. In Europe, the price for coconut oil increased by $19.30 from the previous week, reaching $1,453.85/MT CIF

Domestic Prices

Desiccated Coconut

In the local market, desiccated coconut prices have slightly decreased, now ranging between P5,257.00 and P5,549.00 per 100 lbs. bag.

Coconut Oil

The local market for crude coconut oil shows firm prices, with sellers quoting between P72.50 and P73.50 per kilo. Refined, bleached, and deodorized (RBD) coconut oil prices also remain steady, ranging from P94.40 to P152.00 per kilo, excluding VAT

Philippine Export Trends:

Exports of Philippine coconut products experienced a notable decline in March 2024. This was the first year-on-year decrease after a series of gains earlier in the year.

Export volume dropped by 14.2%, from 247,874 metric tons (MT) to 212,783 MT.

Gross export receipts decreased by 16.3%, from USD $219.571 million to $183.676 million.

Desiccated Coconut: showed a slight increase of 0.6%, from 14,485 MT to 14,578 MT, defying the overall downward trend.

Coconut Oil: fell by 13.7%, from 137,097 MT to 118,377 MT.

Oleochemicals: Saw a dramatic decrease of 70.2%, from 7,866 MT to 2,344 MT.

Copra Meal experienced a significant decline of 38.5%, from 24,888 MT to 15,310 MT.

However, the cumulative export figures for the year’s first quarter reached 634,298 MT in copra terms, marking a 15.7% increase from the same period last year.

The main reasons for the decline may have been increased competition from other coconut-producing countries, affecting the market share of Philippine coconut products. Supply chain disruptions from the Red Sea Crisis and the increased shipping costs have also impacted some export volumes, with no end in sight and an increase in attacks and retributions.

Plus, last week’s IT global outage caused by a CrowdStrike software update affected many global ports, causing further delays.