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 The price of coconut oil has risen by a whopping 45% compared to last month - some market players have therefore withdrawn from the market for the time being and are observing the price increases.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

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
Apr 11, 2024
ORDU. In the coming days, the TMO could start selling its raw material stocks. The INC has adjusted its production estimates for the global hazelnut crop.
Nuts
Apr 11, 2024
CAPE TOWN/REUS. According to the INC, macadamia production will increase in the main producing countries and market players are optimistic. A major case of fraud was recently uncovered in South Africa.
Dried Fruit
Apr 9, 2024
AYDIN. With higher temperatures and a lack of rainfall, the probability of yield losses is increasing in Aydin. Production was already significantly lower than usual this season.
Dried Fruit
Apr 9, 2024
MALATYA/REUS. While some exporters firmly expect demand to pick up after the Ramadan festivities, others expect it to remain weak. The market is extremely quiet during this week of Eid.