Coconut Oil prices in the Philippines went down in the first half of November after a 3% drop in October. The early November weakness was due to slow international demand, lack of forward buying and sufficient inventory, which prevented prices from going up. Indonesian suppliers were competitive, and export was stable, while logistics and port operations were smooth, so shipment was steady. In October, Coconut Oil FOB Quezon went down due to oversupply from accelerated milling before typhoon disruptions, lower copra prices and cautious international buying. Domestic consumption was steady, supporting the baseline trade but overall activity was slow as buyers waited for clearer market signals. Seasonal demand was moderate and trading volume was slow as both importers and processors were cautious. According to market sources, Coconut Oil prices will continue to go down in the second half of November. Limited buying, enough inventory and competitive origin offers will keep the market weak and prices down.
Coconut Oil prices in the Philippine market continued to fall throughout the first half of November after the big drop in October. Market players said that weak international demand, no forward buying and ample domestic inventory were the reasons for the soft market. The lingering effect of global vegetable oil weakness and narrow premiums over palm kernel oil still weighed on the market while competition from Indonesian suppliers kept local offers for Coconut Oil in check. Despite concerns over typhoon damage in the northern regions, Coconut Oil supply was sufficient to meet both domestic and export requirements, thus limiting the upward price movement. Logistics and port operations were smooth, allowing Coconut Oil to flow smoothly to key buyers but lack of aggressive buying kept trading volumes low. Overall, the market was cautious as importers and processors were waiting for clearer market signals as demand was still moderate.
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