Dried Fruit

Desiccated coconuts: edible oil market also challenges coconut traders

October 28, 2021 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 The price of coconut oil has risen by a whopping 45% compared to last month - some market players have therefore withdrawn from the market for the time being and are observing the price increases.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

EUR/kg

Fine, high fat, Indonesia

2.41

Medium, high fat, Indonesia

2.70

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
Nuts
Jun 23, 2022
ORDU. Attention has certainly shifted towards the new hazelnut crop in Turkey. Demand is frustratingly low and suppliers are using creative means to change this. Things will, however, turn from bad to worse for many hazelnut manufacturers in Turkey.
Nuts
Jun 22, 2022
SACRAMENTO/SANTIAGO. At the end of the season, walnut shipments from the USA pick up once again. The overall weak export results of the season so far increase the sales pressure on the supplier side.
Nuts
Jun 22, 2022
HANOI. As Vinacas announced, Vietnamese imports declined noticeably year-on-year in the first four months of 2022. The country's exports are also lower than last previous year, although the decline here is more moderate.
Dried Fruit
Jun 22, 2022
SANTIAGO/SACRAMENTO. In its latest report, the Chile Prunes Association once again confirms the result of the prune production. According to the experts, the war between Russia and Ukraine is also affecting Chile's exports.