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Revival of monsoon in Kerala in the last couple of days may decrease copra arrivals in major markets.
This may also attract major buyers to step in for purchase of coconut oil, which is ruling low at Rs 60 a kg in Kerala and Rs 58.75 in Tamil Nadu, officials at the Coconut Oil Merchant Association (COMA) said.
Prices quoted last week in the Kerala market were Rs 62 a kg, while in Tamil Nadu they ruled at Rs 60.
Mr Prakash B. Rao, Vice-President, COMA, said that copra prices in Kerala are ruling firm at Rs 4,200 a quintal against Rs 4,400 last week. Prices in Tamil Nadu stood at Rs 4,000 against Rs 4,200.
Compared with substitute oils such as palm oil and palm kernel oil which are trading at Rs 62 and Rs 70, respectively, he said that coconut oil price is cheap at Rs 60 a kg currently. Hence, prices of both copra and coconut oil are likely to increase on buying at bottom levels by local traders and selective corporates, he said.
Prices of palm oil and palm kernel oil were quoted at Rs 61.50 a kg and Rs 68, respectively last week.
Mr Bharat N. Khona, former Board Member, COMA, said that the market is expected to stabilise at this rate and there will not be any further decline. As prices are low and attractive, the market can expect upcountry buyers to purchase. They may be interested in operating in the market at this price level, he said.
Mr Thalath Mahamood, President, COMA, said that the market is sluggish with buyers staying away. It is expected to revive once corporate buying starts..
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