The coconut oil market in Kerala and Tamil Nadu is witnessing a bullish trend due to low arrivals of copra. This has resulted in a spurt in prices at Rs 67 per kg in Kerala (Rs 61.50) and Rs 66 in Tamil Nadu (Rs 59.50).

According to Prakash B. Rao, Vice-President, Cochin Oil Merchants’ Association (COMA), tight supply and speculative buying by local traders boosted sentiment in the coconut oil market this week. The prices are likely to remain upfront in the coming days due to this bullish trend, he said.

Copra prices are ruling at Rs 4,800 per quintal in Kerala (Rs 4,200) and Rs 4,700 in Tamil Nadu (Rs 3,900). He said people have started stocking copra in bulk quantities in Kerala and Tamil Nadu on anticipation of a further rally.

However, palm oil prices were ruling weak at last week’s level of Rs 54 per kg and palm kernel at Rs 53 per kg on reports of a good crop in Malaysia and Indonesia, the leading producing countries, he said.

Bharat N. Khona, former Board Member, COMA, attributed the good demand for edible copra, which is moving towards North India, as the main reason for the market rising. However, he said North Indian buyers and corporates were not interested in venturing into the market at these high rates as imported edible oils are still cheaper, he said.

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