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MANILA - Coconut oil exports more than doubled in June, the second monthly gain since December, amid strong demand from traditional markets.
Yvonne Agustin, United Coconut Association of the Philippines executive director, said CNO shipments increased by 146.97 percent to 79,864 metric tons in June 2012 from 32,337 MT recorded a year ago.
Agustin attributed the strong monthly performance to the narrowing premium between palm kernel oil and coconut oil, leading to strong demand from traditional CNO markets.
“We had stable supply, and at the same time, there was better demand,” she said.
“The price difference between palm kernel oil and coconut oil wasn’t that significant anymore. Last month, coconut oil was priced at an average of $1,051 per ton, while palm kernel oil was at $1,097 per ton,” she said.
Agustin also cited base effects given the weak shipments last year.
Shipments in the first half of this year averaged 80,000 to 100,000 metric tons.
Despite the robust June performance, first-half CNO exports were still 13.69 percent lower at 387,284 metric tons this year, from 448,702 in 2011.
Agustin said the industry is hopeful that exports will bounce back in the second half.
“Our projection is that we’ll continue this recovery,” she said.
In 2011, the industry fell short of its coconut oil export target of 900,000 metric tons because of the persistent tight supply in the domestic market. Coconut oil exports last year dropped nearly 39 percent to 823,381 metric tons.
For this year, the target is set at 925,000 metric tons, as production of copra starts to pick up.
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