The Mintec Benchmark Prices (MBP) of desiccated coconut of Philippines origin delivered on a CFR basis Northwest Europe fell by 7% during the week of 25th May and down 8% month-on-month (m-o-m), at USD 2,910/tonne. The benchmark peaked in November last year at USD 3,680/tonne, with prices gradually declining since then. Presently, prices are 13% lower than at the same time last year.
A similar price trend has been observed for a desiccated coconut from other origins including Sri Lanka and Indonesia. The MBP for Sri Lankan desiccated coconut (CFR EU) was down 7% week-on-week (w-o-w) and 24% year-on-year (y-o-y) on 25th May, at USD 2,325/tonne. Prices of Indonesian desiccated coconut delivered on a CFR basis Northwest Europe plummeted 12% in the week of 25th May and down 19% y-o-y, at USD 2,410/tonne.
The recent price erosion can be attributed to falling prices of coconut oil, with the MBP for crude coconut oil CFR Rotterdam falling significantly since mid-March. Prices have come down from USD 2,350/tonne on 18th March to USD 1,650 on 30th May, a decline of 30%, on favourable prospects for this year’s coconut harvest in the Philippines.
Production prospects for the current campaign have been boosted by favourable weather conditions. Amid increasing exports, prices have been further pressured by weak demand from China and the EU. Shipments to China have been poor due to the Chinese COVID-19 lockdowns, whereas European buyers seem to be well covered with stocks or have switched to other oils. Expectations that prices will erode further have also weighed on the demand.
The weakening coconut oil market has dragged down prices of palm kernel oil, with the MBP for crude palm kernel oil CFR Rotterdam down 4% during the week of 30th May and down 34% quarter-on-quarter, at USD 1,590/tonne.
