RP coconut prices may move sideways

RP coconut prices may move sideways

MANILA (Reuter): Coconut oil prices are expected to move
sideways this week ahead of the Easter holiday, Manila vegetable
oil traders said yesterday.

Traders also said the annual convention of oilseeds processors
in the United States on March 19 to 21 would keep trading volume
low.

"Most of the players are attending the convention. Don't
expect many trades this week and next as everybody seems to be
taking an early Easter holiday," said one senior vegetable oil
trader.

Traders said increasing coconut production from both the
Philippines and Indonesia had depressed prices of coconut oil by
an average of US$20 per ton last week.

"Copra output is picking up in the Philippines, particularly
the southern Mindanao island. So is production in Indonesia,"
said one trader.

"But despite increasing output from both countries, I don't
expect Rotterdam stocks of coconut oil to increase tremendously
from current levels," the trader added.

Coconut oil stocks in Rotterdam increased to 26,705 tons on
March 10 compared with 18,826 tons the previous week.

Traders said they do not expect many major ships carrying
coconut oil to dock in Europe next month.

"So far there were reports of small ships carrying 7,000
tons each delivering ships next month," said one trader.