United Coconut Associations of the Philippines, Inc.

4th Floor COCO CENTER, 291 Dansalan Street, Brgy. Barangka Ilaya
1550 Mandaluyong City, Metro Manila, Philippines
P.O. Box 12725, Ortigas Center Post Office, 1605 Pasig City, Metro Manila, Philippines
Tel. Nos.: (63-02) 531-0351; (63-02) 584-5338 Fax No.: (63-02) 531-0473
E-mail: ucap@ucap.org.ph Webpage: www.ucap.org.ph

June 29, 2015

Dear UCAP member/subscriber:

Enclosed please find copy of the UCAP Monthly Review for the month of May
2015/2014 based on UCAP preliminary data, highlights of which follow:
1. Export of coconut products in May slightly rose by 2.1% to 128,033 MT in copra
terms from 125,443 MT in May year-ago but fell by 2.3% from prior month
preliminary data at 130,986 MT.
2. All export products but coconut oil posted double-digit declines year-on-year:
coconut oil +12.2% to 70,150 MT from 62,513 MT; while copra meal -47.0% to
30,803 MT from 58,133 MT, desiccated coconut -38.5% to 8,948 MT from 14,552
MT, oleochemicals -22.4% to 2,850 MT as copra from 3,672 MT. There was no
reported export of copra as of this report as against 46 MT last year.
3. Local prices of coconut products declined from month-ago except copra: copra +3.1%
to P3,228.57/100 kilos from P3,131.05; while coconut oil -3.3% to P53.96/kilo from
P55.79, copra meal -1.9% to P11.09/kilo from P11.30, husked nuts -9.5% to
P8,324.29/MT from P9,201.40. However, current month prices were down from last
year: copra -19.5%, coconut oil -14.0%, copra meal -2.5%, husked nuts -16.7%.
4. Foreign market prices showed mixed trends vs. month-ago with coconut oil and
soybean oil in the upside: coconut oil +5.0% to USD1,115.95/MT CIF from
USD1,062.85, soybean oil +3.5% to USD714.63/MT from USD690.61; while palm
kernel oil -1.4% to USD953.73/MT CIF from USD967.59, palm oil -0.1% to
USD660.89/MT CIF from USD661.39. Prices this month suffered double-digit
decline from year-ago: coconut oil -20.9%, palm kernel oil -24.2%, palm oil -26.2%,
soybean oil -20.1%.

5. The price spread of coconut oil against palm kernel oil was USD162.22/MT
(USD95.26 last month), vs. palm oil it was USD455.06/MT (USD401.46), and vs.
soybean oil at USD401.32/MT (USD372.24). Last year, coconut oil likewise
recorded premium above USD500/MT vs. palm oil and soybean oil.

Federated UCAP Members

Association of Coconut Brokers, Inc. (ACBI) * Association of Philippine Coconut Desiccators (APCD) * Coconut Oil Refiners Association (CORA) *
Philippine Activated Carbon Manufacturers Association, Inc. (PACMA) * Philippine Coconut Authority (PCA) * Philippine Coconut Oil Producers
Association (PCOPA) * Philippine Coconut Producers Federation (COCOFED) * Philippine Coconut Research & Development Foundation (PCRDF) *
Philippine Oleochemical Manufacturers Association (POMA) * United Coconut Planters Bank (UCPB) * Virgin Coconut Oil Producers & Traders
Association of the Philippines, Inc. (VCO Philippines)

6. January-May export at 619,104 MT in copra terms climbed 11.6% over same period
year-ago total at 554,811 MT. Breakdown is as follows: copra 36 (153 last year),
coconut oil 341,926 (283,409), copra meal 159,370 (231,825), desiccated coconut
42,043 (56,866), oleochemicals as copra 11,327 (16,884).

Very truly yours,

YVONNE T. V. AGUSTIN
Executive Director

Encl.: a/s

MAY 2015
1.0

OVERVIEW
Preliminary UCAP data show export of coconut products in May thinly grew by 2.1% year-on-year to
128,033 MT in copra terms from 125,443 MT but slowed by 2.3% from prior month unofficial data at
130,986 MT. Revenue, however, slumped 19.9% to USD106.197 million from USD132.498 million;
data exclude earnings from oleochemicals.
Except for copra, prices of coconut products in the local market declined again from monthago: copra +3.1% to P3,228.57/100 kilos from P3,131.05; while coconut oil -3.3% to P53.96/kilo
from P55.79, copra meal -1.9% to P11.09/kilo from P11.30, husked nuts -9.5% to P8,324.29/MT
from P9,201.40. However, all prices in the present month were down sharply from May last year:
copra -19.5%, coconut oil -14.0%, copra meal -2.5%, husked nuts -16.7%.
In the foreign market, prices showed mixed trends from prior month with coconut oil and
soybean oil in the positive territory: coconut oil +5.0% to USD1,115.95/MT CIF from USD1,062.85,
soybean oil +3.5% to USD714.63/MT from USD690.61; while palm kernel oil -1.4% to
USD953.73/MT CIF from USD967.59, palm oil -0.1% to USD660.89/MT CIF from USD661.39.
Current month prices showed double-digit decline from year-ago: coconut oil -20.9%, palm kernel oil
-24.2%, palm oil -26.2%, soybean oil -20.1%.
The price spread of coconut oil over other vegetable oils increased further from last month.
Premium against palm kernel oil was USD162.22/MT (USD95.26 last month), vs. palm oil was
USD455.06/MT (USD401.46), vs. soybean oil was USD401.32/MT (USD372.24).

2.0

DOMESTIC MARKET

2.1

Prices
Prices of coconut products in the local market trekked downward this month from month-ago.
Coconut oil though has suffered continued losses for seven straight months to date, trailed by
husked nuts with five months of extended decline. Copra, however, failed to succumb to overall
market weakness during the month. Shortfalls, however, were substantial when current month
prices were compared with May last year, save for copra meal which depicted minor deficit.
Copra price climbed another 3.1% to P3,228.57/100 kilos from last month at P3,131.05 in
step with gain in the foreign coconut oil market but had markedly lost value by 19.5% from prior
year at P4,008.48/100 kilos. Prices during the month ranged P3,175-3,250/100 kilos, an
improvement from prior month at P2,995-3,195/100 kilos.
Coconut oil, however, continued to trail downward in the last seven months to break the
16-month low recorded in December 2013 of P55.40/kilo. Interestingly, prices have lingered below
P60.00 for the fourth month running. Average price this month stood at P53.96/kilo was cheaper
by 3.3% compared to month-ago at P55.79 and 2.6% off the 16-month low data. Shortfall came to
an appreciable 14.0% juxtaposed against last year at P62.76. Prices followed a downward path
from a high of P56.90/kilo at the start of the month down to P53.47 towards the end of the month.
Month-earlier, prices swayed between P53.57/kilo and P57.00. All values are crude coconut oil
basis net of 12% Value Added Tax.

UCAP Monthly Review

May 2015

Copra meal price was lightly trimmed by 1.9% to P11.09/kilo from P11.30, sliding for the
second month in a row. Price increment was likewise limited at 2.5% from P11.38 a year ago.
Prices fluctuated within a band of P10.93-11.40/kilo as opposed to P11.27-11.40/kilo month-before.
Husked nuts price continued its free-fall for the fifth successive month and has remained
below P10,000/MT for three successive months now. Level stood at P8,324.20/MT, a 9.5% price
depreciation from month-ago at P9,201.40 and a double-digit fall by 16.7% from year-ago at
P9,988.65/MT. Price range was P8,152.50-8,616.75/MT compared to P8,733.50-9,700 last month.

DOMESTIC PRICES IN MAY 2015

THIS MONTH
May
2015

COMMODITY
Copra (P/ck)
Coconut Oil (P/kg)
Copra Meal (P/kg)
Husked Nuts (P/MT)

LAST MONTH
April
2015
3,131.05
55.79
11.30
9,201.40

3,228.57
53.96
11.09
8,324.29

LAST YEAR
May
2014
4,008.48
62.76
11.38
9,988.65
Source: UCAP Weekly Bulletin

2013/2014

Copra Domestic Prices,

Monthly 2013/2015 (P/100 kilos)

2013/2014

Coconut Oil Domestic Prices,

Monthly 2013/2015 (P/Kg)

2014/2015

2014/2015

6,000

80
5,000

70
60

4,000

50
3,000

40
30

2,000

20
1,000

10
0
June

July

Aug

Sept

Oct

Nov

Dec

Jan

Husked Nuts Domestic Prices,

Monthly 2013/2015 (P/MT)

Feb

Mar

Apr

May

2013/2014
2014/2015

0
June

July

Aug

Sept

Oct

Nov

Dec

Jan

14

12,000

12

10,000

10

Mar

Apr

May

2013/2014

Copra Meal Domestic Prices,

Monthly 2013/2015 (P/Kg)

14,000

Feb

2014/2015

8,000

6,000

4
4,000

2
2,000

0
June July

0
June July

Aug Sept

Oct

UCAP Monthly Review

May 2015

Nov

Dec

Jan

Feb

Mar

Apr

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

May

3.0

PHILIPPINE EXPORTS

3.1

Volume
UCAP preliminary data show export of coconut products in May slightly rose 2.1% to 128,033
MT in copra terms from 125,443 MT in the same month year-earlier. The figure may be 2.3%
short of prior month preliminary data at 130,986 MT but it has exceeded the four-month average
(January-April) at 122,768 MT by 4.3%. However, on per product category, only copra meal
reflected below average performance.
As in prior month, coconut oil posted the only year-on-year growth during the month thus
exclusively boosted aggregate coconut products export for the month. Shipment of the oil this
month increased 12.2% to 70,150 MT from 62,513 MT last year and likewise surpassed the
monthly average at 67,944 MT by 3.2%. Much of the months exports at 41,000 MT (58.4%)
were consigned to Europe while more than a third (34.9%) went to the United States. Japan
handled the remainder at 4,650 MT and contributed 6.6%.
Copra meal suffered the biggest loss with outbound load pruned by 47.0% to 30,803 MT
from 58,133 MT. It also registered the only deficit from the monthly average at 32,142 MT by
4.2%. Vietnam was top destination this month, accounting for nearly one-half of total (48.7%)
and dislodging consistent market leader, Korea. Purchases stood at 15,000 MT, trailed by Korea
which took in 6,300 MT (20.5%), Pakistan 5,503 MT (17.9%), and Japan 4,000 MT (13.0%).
Desiccated coconut export was slashed by 38.5% at 8,948 MT from 14,552 MT but beat the
monthly average at 8,274 MT by a hefty 8.1%. Oleochemicals scaled down shipment by 22.4% at
2,850 MT in copra terms from 3,672 MT but outpaced the monthly average at 2,119 MT by a
whopping 34.5%. There was no reported shipment of copra during the month as of this report
compared to 46 MT reported at the same time last year.
Cumulative January-May export at 619,104 MT in copra terms significantly outstripped by
11.6% same period year-ago total at 554,811 MT. Breakdown is as follows: copra 36 (153 last
year), coconut oil 341,926 (283,409), copra meal 159,370 (231,825), desiccated coconut 42,043
(56,866), oleochemicals as copra 11,327 (16,884).

3.2

Values
Based on UCAP estimates, export in May generated USD106.197 million, appreciably shaving
by 19.9% previous year figure at USD132.498 million. Totals still exclude revenue from
oleochemicals.
All products showed revenue deficiencies from last year. In the case of coconut oil,
turnover at USD76.586 million shrank 11.3% from USD86.332 million on account of 20.9%
shortfall in prices. Copra meal income nosedived by 47.4% to USD6.992 million from
USD13.304 million as deliveries dwindled by nearly one-half. The cut in desiccated coconut
receipts by 31.1% to USD22.618 million from USD32.807 million was likewise volume driven.
All told, coconut oil remained a primary export income earner responsible for 72.1% of the
months offtake, followed by desiccated coconut and copra meal with respective contributions of
21.3% and 6.6%.

UCAP Monthly Review

May 2015

Estimated January-May export proceeds at USD528.923 million was 5.5% behind same
time last year total at USD559.908 million. Breakdown is as follows, in million USD dollars:
copra 0.042 (0.184), coconut oil 383.654 (378.831), desiccated coconut 112.442 (120.839), copra
meal USD32.784 (60.055).

3.3

Prices
Export prices of all coconut products in review dwindled from month-earlier. Against year-ago,
however, desiccated coconut was an only gainer.
Based on UCAP computations, export price of coconut oil in May was USD1,091.75/MT
FOB, a marginal deficit by 1.2% from April at USD1,105.25 but depicted a substantial cutback of
20.9% from prior year at USD1,381.01/MT. Copra meal price also slightly slipped by 1.4% to
USD227.00/MT FOB from USD230.25/MT but was barely touched when compared to last year
at USD228.86/MT (-0.8%). On the other hand, while desiccated coconut logged the biggest
setback of 8.8% during the month at USD2,527.76/MT FOB from USD2,772.63/MT, it posted
the only price advance of 12.1% over last year at USD2,254.55/MT.

PH COCO EXPORT PRICES IN MAY 2015

COMMODITY
Copra ($/MT FOB)
Coconut Oil ($/MT FOB)
Copra Meal ($/MT FOB)
Desiccated Coconut ($/MT FOB)

Copra Export Prices

Monthly 2013/2015 (US$/MT FOB)

THIS MONTH
May
2015
1,091.75
227.00
2,527.76

2013/2014
2014/2015

LAST MONTH
April
2015
1,105.25
230.25
2,772.63

LAST YEAR
May
2014
1,189.41
1,381.01
228.86
2,254.55

2013/2014
2014/2015

Coconut Oil Export Prices

Monthly 2013/2015 (US$/MT FOB)

1,600

1,600
1,400

1,400
1,200

1,200
1,000

1,000
800

800

600

600

400

June July

Jun eJuly Aug Sep t Oct No v Dec Jan Feb Mar Ap r May

Copra Meal Export Prices

Monthly 2013/2015 (US$ /MT FOB)

2013/2014
2014/2015

Sept

Oct

Nov

Dec

Jan

Feb

Mar

3,400

340

3,200

320

3,000

300

2,800

280

2,600

260

2,400

240

2,200

220

2,000

200

1,800

180

1,600

Apr

May

2013/2014
2014/2015

D esiccated C oconut Export Prices

Monthly 2013/2015 (US$ /MT FOB)

360

160

Aug

1,400

140
June

July

Aug

Sept

Oct

Nov

UCAP Monthly Review

May 2015

Dec

Jan

Feb

Mar

Apr

May

1,200
June

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

4.0
4.1

WORLD MARKET
Prices
Prices of vegetable oils in May in the international market depicted mixed trends from prior
month with coconut oil and soybean oil in the uptrend. Current month prices, however,
decelerated steeply from last year across all sections.
Coconut oil defied the losing trend in vegetable oil prices during the month. The price
spike was underpinned by slow copra deliveries at Philippine mills amid improved overseas
demand, and concerns over an approaching typhoon in the country which could affect supplies.
Weakness in other vegetable oils prices, however, tempered price from further rising. Average
price finally rose 5.0% after two months of downswing to USD1,115.95/MT CIF from
USD1,062.85/MT but registered an amplified loss of 20.9% from year-ago at USD1,410.11/MT.
Price range this month stood at USD1,087.50-1,140.00/MT CIF as against last month at
USD1,042.50-1,086.00/MT.
Lauric partner palm kernel oil suffered further price deterioration for the third month
running this month after shedding another 1.4% to USD953.73/MT CIF from USD967.59 thus
remaining below USD1,000 in the last two months. Price movement appeared to mirror that of
coconut oil but limited buying support failed to lift values. Present month price reflected a 24.2%
erosion from level a year ago at USD1,258.17/MT. Prices fluctuated at a wider range this month
of USD920-1,020/MT CIF compared to $935-1,000/MT CIF last month.
Palm oil was still the cheapest vegetable oil to this month. Level though at USD660.89/MT
CIF hardly declined from month-ago at USD661.39/MT but in historical terms plummeted 26.2%
from prior year at USD895.71/MT. Weakness shown during the month was a reflection of the
bearish fundaments which have remained intact, dragging palm oil to 7-month low. MPOB April
data showed significant increase in Malaysian palm oil production by 13.3%, stocks leaped
17.6% and export slipped 0.6% from month-ago. However, positive market influences almost
erased losses to record a mere 0.1% slide from last month price, namely the El Nio event which
could affect output, the Indonesian export tax on palm oil which should give Malaysian palm oil
an edge, and a developing bullish cargo surveyors data for May. This month price swings stayed
within range of USD642.50-680.00/MT CIF as opposed to USD650-690/MT of the previous
month.
Soybean oil price extended last month recovery after levels continually relaxed in February
and March. The strengthening of soybean oil price was driven by strong demand for US soybeans
internally as well as externally notably from mainstay buyers like India and China. The labor
unrest in South America was likewise considered a plus factor in the market owing to a
possibility buyers could shift to the US for supplies. This months 3.5% price upturn from
USD690.61/MT last month finally elevated soybean oil price above the USD700-mark after
languishing for three months below the level. Nevertheless present month price crashed by
20.1% from year-ago at USD894.29/MT. Prices oscillated in the range USD686.33-734.59/MT
from USD669.80-705.00.91/MT a month ago.
The price premium of coconut oil over other vegetable oils spiked this month from monthbefore. Margin over palm kernel oil rocketed to USD162.22/MT from only USD95.26 last month.
Similarly, price spread over palm oil jumped to USD455.06/MT from USD401.46 as well as
against soybean oil which shot up to USD401.32/MT from USD372.24/MT. At the same time
last year, coconut oil had lower price premium against palm kernel oil at USD151.94/MT. In the

UCAP Monthly Review

May 2015

case of palm oil and soybean oil, respective price spreads last year were above USD500/MT at
USD514.40 versus palm oil and USD515.82/MT against soybean oil.

INTERNATIONAL PRICES IN MAY 2015

COMMODITY
Coconut Oil ($/MT)
Palm Kernel Oil ($/MT)
Palm Oil ($/MT)
Soybean Oil ($/MT)

THIS MONTH

LAST MONTH

LAST YEAR

May
2015
1,115.95
953.73
660.89
714.63

April
2015
1,062.85
967.59
661.39
690.61

May
2014
1,410.11
1,258.17
895.71
894.29

2013/2014

Coconut Oil International Prices,

Monthly 2013/2015 (US$/MT)

2013/2014
2014/2015

Palm Kernel Oil International Prices,

Monthly 2013/2015 (US$/MT)

2014/2015

1,800

1,600
1,600

1,400
1,400

1,200
1,200

1,000
1,000

800
800

600
600

400
400
Jun e

July

Aug

Sep t

Oct

No v

Dec

Jan

Feb

Mar

Ap r

June July

May

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

2013/2014
2014/2015

Soybean Oil International Prices

Monthly 2013/2015 (U S$/M T)

2013/2014
2014/2015

Palm Oil International Prices,

Monthly 2013/2015 (US$/MT)

Aug

1,300

1,400
1,200

1,300
1,200

1,100

1,100
1,000

1,000
900

900

800
800

700
600

700

500
June

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

600
June

UCAP Monthly Review

May 2015

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

TABLE I
TRADITIONAL PHILIPPINE COCONUT PRODUCTS
2015/2014 Export Comparison
MAY 2015/2014
VOLUME IN M.T.

EXPORT
COMMODITY

2015

2014

Copra
Coconut Oil
Copra Meal
Desiccated Coconut
Oleochemicals 1
TOTAL 1/

70,150
30,803
8,948
2,850
128,033

46
62,513
58,133
14,552
3,672
125,443

VALUE IN FOB US$

% Chg
12.2
-47.0
-38.5
-22.4
2.1

2015

2014

76,586,263
6,992,281
22,618,396
106,196,940

55,260
86,331,547
13,304,379
32,807,101
132,498,287

WEIGHTED AVE. PRICE

%
2015
2014
Chg

% Chg
-11.3
-47.4
-31.1
-19.9

1,091.75
227.00
2,527.76

1,189.41
1,381.01
228.86
2,254.55

-20.9
-0.8
12.1

JANUARY- MAY 2015/2014

VOLUME IN M.T.

EXPORT
COMMODITY

2015

2014

Copra
Coconut Oil
Copra Meal
Desiccated Coconut
Oleochemicals 1
TOTAL 1/

36
341,926
159,370
42,043
11,327
619,104

153
283,409
231,825
56,866
16,884
554,811

VALUE IN FOB US$

% Chg
-76.5
20.6
-31.3
-26.1
-32.9
11.6

2015

2014

42,480
383,654,324
32,783,716
112,442,077
528,922,397

183,912
378,830,606
60,054,878
120,838,738
559,908,134

WEIGHTED AVE. PRICE

%
2015
2014
Chg

% Chg
-76.9
1.3
-45.4
-6.9
-5.5

1,180.00
1,122.04
205.71
2,674.45

1,205.90
1,336.69
259.05
2,124.97

Table II
MAY 2015 COCONUT PRODUCTS EXPORT BY DESTINATION
(Metric Tons)
Coconut Oil

Volume

% Share

Europe
USA
Japan

41,000
24,500
4,650

58.4
34.9
6.6

TOTAL

70,150

100.0

Copra Meal
Vietnam
Korea
Pakistan
Japan
TOTAL

Volume

%Share

15,000
6,300
5,503
4,000
30,803

48.7
20.5
17.9
13.0
100.0

Source: Industry Reports to UCAP Research

UCAP Monthly Review

May 2015

-2.1
-16.1
-20.6
25.9