Commodities

Coconut oil futures set to revive from Oct 20

V. Sajeev Kumar Kochi | Updated on October 09, 2012 Published on October 09, 2012

BL10_COM2COPRA

Coconut oil trading community are pinning their hopes on the re-launch of futures trading in coconut oil shortly for a better price recovery.

According to Prakash B. Rao, Vice-President, Cochin Oil Merchants Association (COMA), the coconut oil market is expected to revive in the near future with the move to re-start futures trading.

He said that the First Commodity of Exchange of India, which is a subsidiary of COMA, will revive futures trading in coconut oil from October 20 after getting necessary approval from the Forward Market Commission.

The resumption of futures trading is likely to balance prices for coconut oil and copra. The market expects better participation from traders, exporters as they can hedge their contract for the next four months, he added.

Meanwhile, the market after a recent crash in the last two days is ruling steady. Prices in Kerala are ruling at Rs 54 for a kg (Rs 57) and Rs 50 in Tamil Nadu (Rs 52). Prices are likely to stabilise at the current level, he said.

Copra arrival, he said, is likely to be short in case if there is further fall in prices. Farmers will not disburse their stocks at lower levels compared with the support price of the Government at Rs 5,100 a quintal. Copra prices both in Tamil Nadu and Kerala markets are at the same level quoted last week at Rs 3,700 and Rs 3,900 respectively.

Rao said that palm oil prices after touching a new low at Rs 48 kg in the last two days bounced back to Rs 51 this week against Rs 54 last week. However, palm kernel oil prices are ruling steady at Rs 47, which is a major concern to coconut farmers, he added.

P.G.K. Koshy, President, COMA, said that the market is witnessing a buying trend as soap and hair oil manufactures started purchasing at lower level. There is a heavy arrival from Tamil Nadu to the central parts of Kerala due to reasonably good stock.

Bharat N. Khona, former Board Member, COMA, said that market is showing a slight improvement in the last few days. Due to attractive pricing, the corporates and upcountry buyers are active in the market. However, the prices of palm kernel oil, which is ruling low is a matter of concern, he said.

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Published on October 09, 2012
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