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.