Desiccated coconuts: firm market
March 18, 2026 at 12:26 PM ,
Der AUDITOR
More stable price trend
The coconut market has stabilised this week, as geopolitical tensions in the Middle East and increased risks to shipping around the Strait of Hormuz are causing a new risk premium across the entire vegetable oil sector, as the experts at T.M. Duché state in their latest report. In Europe, prices for coconut oil in Rotterdam for short-term shipments have risen to USD 2,160–2,325/mt CIF. Palm kernel oil has also recovered to USD 2,016/mt, whilst palm oil remains significantly lower at USD 1,294/mt. As a result, coconut oil remains expensive compared to palm oil, whilst the gap with palm kernel oil has narrowed.
In the Philippines, prices are rising across the entire value chain. Copra averages PHP 7,185 per 100 kg (+190 PHP), whilst crude coconut oil has risen to PHP 131.60/kg. National average prices are also showing upward trends. Following the significant correction in autumn 2025, the market now appears to be stabilising at a more steady price level.
Transport costs continue to rise
The market for desiccated coconuts remains stable at a relatively high level and continues to support processors’ margins. Export prices average USD 1.47/lb FOB, whilst local prices in Manila have risen. At the same time, exports in January recorded significant year-on-year growth of 24.7%, reaching 14,547 mt, according to T.M. Duché.
Internationally, several factors are influencing market dynamics, most notably production expansions in Sri Lanka, supply disruptions from India to the Gulf region, and potential plans in Indonesia to use more biodiesel. Added to this are rising freight rates – the Drewry Index rose by 8% – as well as higher costs caused by the war in Iran, leading to more expensive crude oil, which is above USD 100/barrel. This is leading to rising transport, insurance and replacement costs. Overall, these developments are driving up prices for coconut and other vegetable oils, particularly due to higher energy prices, rising freight costs and increasing uncertainties in global supply chains.
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Desiccated coconuts |
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|
Quality, origin |
EUR/mt |
|
High fat, fine, Indonesia |
3,000 |
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High fat, fine, Philippines |
3,100 |
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Trade sources; FCA NL |
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