Coconut oil export outlook up

The Philippines, the world’s biggest coconut oil exporter, forecasts shipments to rise more than 21% to 980,000 metric tons (MT) this year, as lower prices boost global demand, the head of an industry group said. For the first time since February 1998, coconut oil was cheaper than the more popular palm kernel oil in a trend that began in December, due to slack demand for its end-products amid the global recession. Coconut oil, which is used in food, detergents and biofuels, for April/May delivery was quoted at US$780 per metric ton in Rotterdam, while palm kernel oil was at US$860 per metric ton in late January. “We expect demand to recover given the fact that coconut oil is the cheapest vegetable oil right now,” Yvonne Agustin, executive director at the United Coconut Associations of the Philippines, said in a phone interview. (January 28, 2010)