The country’s coconut oil exports bounced back in May this year after a slump in the previous month as traditional markets increased orders for their stock requirements, the United Coconut Association of the Philippines Inc. (UCAP) said on Thursday.
In a telephone interview, UCAP Executive Director Yvonne Agustin said that the Philippines’ CNO exports reached 136,985 metric tons (MT) in May 2013, up by 83.6 percent from the 74,613 MT a year ago.
From January to May 2013, CNO exports increased 72.1 percent to 533,008MT from 309,684 MT a year ago.
CNO exports hit a slight bump in April 2013, dropping 14.2 percent to 55,800MT from 65,051MT a year ago, as demand from traditional markets slowed down following massive procurements in the previous months.
But Agustin said that demand has started to pick up again as prices of CNO remained lower as compared to palm kernel oil and soybean oil, its premier competitor in the world market.
Over the last two months, CNO was priced at an average of $811 a MT, palm kernel oil was at $852 per MT, and soybean oil was at $1,083 a MT.
Agustin said that they expect exports to pick up in the coming months because of increasing requirements from buyers, particularly Europe and the United States.
For this year, she said that they expect higher shipments of CNO to Europe and US, which account to about 80 percent of the total exports, as the market shifts away from palm kernel oil because of price differentials.
The industry forecast CNO exports to reach 900,000MT in 2013, lower than the 925,000MT target last year.