INITIAL data from the Philippine Coconut Authority (PCA) on the price of coconut oil (CNO) during much of September this year shows some fluctuation, but marked with improved price average for the country’s prime agricultural export, compared with last month.
Based on 11 trading days of CNO made available to the BusinessMirror, the edible oil commanded an average of $1,240 per metric ton (MT) for September, while its closest rival, palm kernel oil, also registered an improvement but still a lower average of $1,070 per MT.
This is an improvement compared with the $1,177 average per MT recorded last month from the Commodity Markets Review released by the World Bank. In July the CNO registered a better $1,260 average per MT.
Based on the data from the PCA, CNO only recorded $1,195 on September 12, then improved to $1,200 a day after and stayed in that price until September 16. It rallied two days after with $1,270 per MT on September 18 and further spiked a day after at $ 1,275.
The priced dropped to $1,250 on September 20 and slid further a $1,240 on September 24. It improved and settled at $1,255 on September 26.
To recall, the United Nations Food and Agriculture Organization reported that its Food Price Index dipped for third consecutive month, from April to June of this year, mainly due to drop in cereal and vegetable oil prices amid improved global supplies.
However, exports of Philippine CNO were down by 50 percent from January to April, mainly because of lack of raw materials, coupled with the contraction in coconut production, the United Coconut Association of the Philippines (Ucap) reported.
“CNO exports fell 49 percent to 237,831 MT from January to April 2014 period, compared with 466,111 MT during the same period in 2013,” Ucap Executive Director Yvonne Agustin said in a telephone interview, citing preliminary industry data.
During the January to March period of this year, “coconut production was estimated at 3.36 million metric tons [MMT], 6.1 percent below the 2013 level of 3.58 MMT,” the Bureau of Agricultural Statistics in its quarterly major nonfood industrial crops bulletin said.