MANILA (Dow Jones)--World coconut oil prices continued on their downward
trend this week, in line with losses in most commodity markets, trade
participants said.

  "There was a huge selloff at the beginning of the week. Most major
commodities, including vegetable oil, suffered the same fate," one trader said.

  The coconut oil market mostly tracked developments in the trendsetting palm
oil and soyoil markets, traders said.

  Soybean futures on the Chicago Board of Trade plummeted early in the week in
response to prospects of higher soybean acreage.

  The U.S. Department of Agriculture said farmers intended to plant 18% more
soybean area this year, more than expected, as growers seek to take advantage
of recent record-high prices.

  Soybean area this year was estimated to reach 74.8 million acres, a big jump
from last year though still 1% lower than the record acreage seen in 2006.
Analysts were anticipating 69 million to 71 million acres.

  Crude palm oil futures on Malaysia's derivatives exchange registered losses
early in the week, taking cues from weak soybean oil and expectations of higher
end-month stocks.

  Malaysia's end-month palm oil stocks may have reached yet another record high
for the fourth time in five months in March, possibly touching 2 million metric
tons for the first time, trade and plantation executives said Wednesday.

  The Malaysian Palm Oil Board estimated end-month inventories in February at
an all-time high of 1.93 million tons, and is expected to issue estimates for
March on April 10.

  Despite bearish fundamentals in palm and soy, price directions in the
vegetable oil market will be dictated by fund players, traders said.

  "Funds are too strong, they can force the market whichever way they want. In
the same way, coconut oil could go many directions," a second trader said.

  But they said limited shipments to Rotterdam, a major destination for
Philippine coconut oil exports, are likely to keep buyers active in the market
and prevent prices from falling too sharply.

  European buyers will try to catch up as their inventories are believed to be
in the low range, traders said.

  Traders quoted coconut oil for April/May shipment at $1,380-$1,385/ton, CIF
Rotterdam, and offers for May/June at $1,375/ton, CIF, while June/July was
offered at $1,375, CIF. These prices are $60-$65 lower than prices quoted a
week ago.

  Philippine coconut oil exports in March grew 76% on year to 68,743 tons
despite tight domestic supply due to seasonal factors, preliminary data from
the United Coconut Associations of the Philippines earlier in the week.

  The increase was mostly due to a low base figure a year ago, the association
said.

  The projection for March exports is 10% lower than February shipments of
76,745 tons.

  The Philippines is the world's largest exporter of coconut oil.