US Coconut Oil prices continued to decline during the first half of June as steady supplies from the Philippines and Indonesia maintained comfortable market availability. The downturn extended the bearish trend established in May, supported by ample shipments, improving logistics, and lower origin costs for coconut-related products in key exporting countries. Stable arrivals at major US ports and sufficient inventory levels reduced urgency among buyers, contributing to cautious purchasing behavior. Demand remained weak across major consuming sectors. Food manufacturers faced softer retail demand as consumers increasingly favored lower-cost edible oil alternatives, while personal-care companies limited procurement after earlier inventory accumulation. Industrial demand from oleochemical and bio-based surfactant producers also remained subdued, offering little support to the market. Looking ahead, analysts expect modest downward pressure to persist through the second half of June as supply conditions remain favorable and buying activity stays restrained. However, potential weather-related disruptions linked to El Niño and elevated freight and insurance costs could create supply chain challenges later in the year, providing support for a potential market recovery as seasonal restocking demand emerges.
