16/08/04, MANILA (Dow Jones)--World coconut oil prices are higher thisweek on bullish soyoil futures and active buying in the market.Manila-based traders quoted coconut oil for July/August shipment at$665 a metric ton, CIF basis Rotterdam, while August/September deliverywas offered at $635/ton. These prices are higher by about $15-$25/ton fromprices quoted a week ago.Traders said prices were boosted by a rally in soyoil futuresfollowing the release of a bullish crop report.The U.S. Department of Agriculture's August crop report said the firstgovernment survey of the 2004-05 U.S. soybean crop showed a much smallercrop than the industry had anticipated.One trader said active buying in the coconut oil market as consumersare trying to cover their nearby positions further boosted prices. Stocksin Rotterdam, a major export destination, remain low, he added.Danilo Coronacion, administrator of the Philippine Coconut Authority,said export prices are likely to remain high until the end of the year onan expected increase in demand from oleochemical producers."There's a tendency for (prices of) petroleum-based oleochemicals torise because of an increase in crude prices. Once you have an increase inoleochemicals (prices), then the price of coconut oil will follow," saidCoronacion.Oleochemicals, derived from both coconut oil and petroleum, are usedin the manufacture of detergents, cosmetics and pharmaceutical products.The Philippines is the world's biggest exporter of coconut oil,averaging about 1 million tons a year.