Coconut Oil (Copra Oil) Prices: During the second quarter of 2023 | ChemAnalyst

North America:

During the second quarter of 2023, Coconut Oil prices in North America mirrored the trends observed in the European market. The price of Coconut Oil experienced a decline from the first quarter to the second quarter, indicating an ongoing weak market sentiment. This price decrease was primarily attributed to the abundant Coconut Oil inventories in North America, coupled with a surplus in supply. Furthermore, the suspension of black sea grain trade by Russia had an additional impact on the market. Reduced exports from key exporting countries further reinforced the downward price trajectory of Coconut Oil in North America. Additionally, a significant drop in crude oil prices and decreased offers from Russia for edible oil and grains had adverse effects on the prices of commodities such as corn, edible oils, and other grains. Higher interest rates and elevated energy prices also influenced import activity, as production in exporting countries faced substantial reductions. Disruptive climatic conditions across North America further disrupted trade activities, primarily involving exporting nations like the Philippines and Indonesia.

Asia Pacific:

Coconut Oil prices in the Asia-Pacific region, particularly in India, Indonesia, and the Philippines, exhibited a downward trend during the second quarter of 2023. Overall, Coconut Oil prices in the Indonesian market experienced a decrease of more than 3 percent. This decline was attributed to weak demand, a subdued vegetable oil market, and falling crude oil prices, as reported by analysts. Indonesia reported a smaller-than-anticipated trade surplus for May, with both exports and imports declining compared to the previous month. Similarly, in the Philippines market, Coconut Oil prices consistently dropped throughout the second quarter due to increased supply and higher stockpiles, exerting further downward pressure on prices. By the end of June, Coconut Oil prices in India were recorded at USD 1,155/MT FOB Quezon, maintaining a consistent downward trend seen in the Philippines. The persistent low regional and global demand contributed to the consistent decline in Coconut Oil prices across the Indian market during the second quarter. Slower demand and elevated inventory levels continued to exert downward pressure on Coconut Oil prices. Additionally, buyers and traders withdrew future quotations from the market in response to the sustained decline in inquiries. This further impacted the overall market sentiment of Coconut Oil through June, both domestically and internationally. In June 2023, India’s Manufacturing PMI was recorded at 57.8, slightly below May’s 31-month peak of 59.7 and below the market forecast of 59.0.

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Europe:

The Coconut Oil market in Europe concluded the second quarter of 2023 with prices continuing their downward trajectory. European Coconut Oil prices continued to decline domestically due to subdued demand, reduced trade activity, and increased stockpiles held by merchants. Throughout Q2 2023, Coconut Oil prices in Europe mirrored the market trends observed in the USA, maintaining a consistent downward trend. One of the key reasons behind the drop in Coconut Oil prices in Europe was the ample reserves available in the market, which led to reduced buying sentiment. Suppliers were hesitant to provide new quotations and focused on destocking their existing inventory. Moreover, a decrease in purchasing activity, driven by adverse weather conditions, ongoing labor disputes, and rising energy prices, contributed to a decline in Coconut Oil imports across the European market, further pressuring prices to move in a downward direction.