Coconut oil market is witnessing a downtrend on expectation of new copra stock arrivals from next month.
Prices in Kerala market has slightly come down to Rs 63 per kg (Rs 63) while in Tamil Nadu, it dropped by Re 1 to Rs 61 per kg against Rs 62 quoted last week.
According to Prakash B. Rao, Vice-President, Cochin Oil Merchants Association (COMA), farmers are selling their stocks instantly on anticipation of downward trend and this would result in further decline in prices in the coming weeks.
It is reported that a majority of the traders are liquidating old stocks as they expect fresh arrivals from the first week of April with the commencement of season in the Kerala market, he added.
Copra prices also showed a downward trend reporting Rs 4,550/quintal in Kerala (Rs 4,600), while in Tamil Nadu it stood at Rs 4,350 a quintal (Rs 4,500).
The other edible oils such as palm oil and palm kernel oil remained at the same level quoted last week at Rs 52 and Rs 53 per kg respectively. Sufficient stock of edible oil with large scale importers was the reason for the prices remaining stagnant, he added.
Thalath Mahamood, former President, COMA said that the market is showing a steady line and is likely to continue for the next couple of weeks. Major corporate buyers are looking at fresh copra stocks. The market is sluggish due to year ending in Kerala and the absence of a local demand has slightly affected the sales in the last few weeks, he said.
Bharat N. Khona , former Board Member, COMA, said that upcountry buyers and corporates are adopting a wait and watch approach and they may enter the market once it stabilises. The market is sliding down due to the absence of a firm demand, he said.