Welcome to our Week 12 Oils & Fats Market Update! This week’s spotlight is on the remarkable developments in the coconut oil market, where significant price movements are reshaping the landscape for buyers and sellers alike.
Market highlights
Coconut oil has experienced a substantial price jump, with crude coconut oil EXW Manila climbing from $2,140/mt to $2,306/mt this week. This represents a notable 7.8% increase that deserves attention from market participants across the supply chain.
What’s driving the surge?
Two critical factors are behind this upward price movement:
- Supply Constraints: A significant shortage of copra in the Philippines, the world’s major coconut oil producer, is creating bottlenecks in production capacity.
- Robust Demand: We’re seeing heightened demand from both food processing and industrial applications, with particularly strong buying activity from U.S. and European markets.
Export performance
The export numbers tell an impressive story. January shipments from the Philippines reached multi-year highs with a combined volume of 140,000 metric tons (60,000 refined and 80,000 crude). This exceptional export performance indicates the strong market pull despite rising prices.
What this means for buyers
If you’re sourcing coconut oil for your operations, this trend suggests securing supply might become increasingly challenging in the coming weeks. Consider reviewing your procurement strategy and exploring contract options to mitigate potential price volatility.
For a deeper dive into these market dynamics and our expert analysis on how these trends might evolve, be sure to read our comprehensive report available on our website.
Did you find this market update valuable? Read our full week 12 analysis on the Vesper platform here: https://app.vespertool.com/market-analysis/1795?commodity=vegetable-oil
