RI and RP coconut oil exports expected to rise

RI and RP coconut oil exports expected to rise

HAMBURG (Reuters): Coconut oil exports from the Philippines and Indonesia are expected to increase to 400,000 tons during October-December of this year, the independent Oil World newsletter said on Tuesday.

This is up about 40,000 tons from the same period in 1996, it said. Third quarter 1997 exports are estimated to rise to 377,000 tons, up 100,000 tons from the same period last year.

Exports, however, will start a seasonal decline in the first quarter of 1998, it added. "They are seen falling below the year- ago level from April 1998 onwards," the newsletter said.

Philippine exports of coconut oil recovered sharply to 701,000 tons during the first nine months of 1997, Oil World said.

Prices are relatively depressed, owing to the big increase in global export supplies since July. World coconut and palmkernel oil supplies are expected to keep rising through March 1998.

But the fundamental outlook for prices should become more bullish from March or April 1998, when Southeast Asian yields and output are projected to fall sharply following drought damage.

The Philippines and Indonesia accounted for 88 percent of world exports during the October/September 1996/97 season.