Dried Fruit

Desiccated coconuts: edible oil market also challenges coconut traders

October 28, 2021 at 12:02 PM , Der AUDITOR
Play report as audio

MANILA. Rising palm oil prices are also pushing up coconut oil, whose prices have almost doubled compared to last month. There is little hope for relief in the near future.

Chinese soy cultivation poses further difficulties

The difficult situation in the edible oil market does not leave out coconut oil. Problem is that a rush for palm oil has begun, supported by high crude oil prices, but driven above all by the prospect of a smaller Malaysian crop this year, which is hitting already tight stocks. As T. M. Duché experts report, in addition to crude oil prices, market players are increasingly concerned about adverse weather conditions and the energy crisis in China, both of which are negatively impacting soybean production. Together, these circumstances have caused palm oil to reach a new record high, dragging other edible oils, including coconut oil, with it. The price of coconut oil has risen by a whopping 45% compared to last month - some market players have therefore withdrawn from the market for the time being and are observing the price increases. European buyers, meanwhile, are trying to cover their open positions for the first two quarters of 2022, according to T. M. Duché.

Further price increases in 2022

Producers and shippers in the Philippines are already under great stress, with corona-related staffing problems causing delays while demand is very high. Europe's drive to produce food in an increasingly environmentally friendly and sustainable way is putting additional pressure on the coconut market, whether it is desiccated coconuts or coconut oil. For 2022, traders are not yet giving price indications, but these are likely to be significantly higher than the current level. Prices for desiccated coconuts on the European spot market have risen considerably again this month and are now just under EUR 2.70/kg FCA Spain for medium, high fat, origin Indonesia.

Desiccated coconuts

Quality, origin


Fine, high fat, Indonesia


Medium, high fat, Indonesia


FCA Spain

Gloomy prospects

In answer to the question of whether price reductions are in sight soon, the experts at T. M. Duché can offer little hope. The shortage of certain edible oils is a fact and cannot be resolved quickly, and the labour shortage caused by Covid will continue to cause inconvenience for some time to come. In addition, it is typhoon season, which makes it difficult to predict what damage will be done to the coconut trees, so the prospects for buyers could certainly be better.

View more
price chart, desiccated coconuts, Sri Lanka
price chart, desiccated coconuts, Indonesia
price chart, desiccated coconuts, Philippines 
price chart, coconut oil, Indonesia
more price charts

View related articles

Go to the News Overview
Jul 15, 2024
BRUSSELS/TEHRAN. EU imports surged to record high levels for pistachios in the first half of the year. US shipments have basically flooded the market, much to the detriment of Iran.
Jul 11, 2024
BRUSSELS/FOLSOM. EU imports have surged for walnuts in the first six months of 2024. Shipments from Ukraine have risen by an incredible 82%. US exports are also strong.
Jul 11, 2024
SACRAMENTO. Production estimates stand 7% lower than in May in the USDA’s Objective Measurement Report issued on Wednesday. Although California is expecting the third largest crop on record, yields still leave a lot to be desired.
Dried Fruit
Jul 10, 2024
QUÉBEC. After a rather disappointing year, experts are forecasting an increase in the production of dried cranberries for the 2024/2025 season. Meanwhile, EU imports have fallen by 40% this year.