Informist, Monday, Nov 29, 2021
By Rahul Dhuri
MUMBAI – Natural rubber prices in the key markets of Kerala rose to a fresh eight-year high today as demand from bulk buyers was firm while supply tight, traders said.
* Heavy rainfall in Kerala, the country’s largest rubber producer, has severely affected tapping activity, resulting in a supply crunch. The peak tapping season in the state begins in October and continues till January, said Joy Alencherry, owner of Kottayam-based Maria Rubber Links.
* On the global front, rubber contracts on the Tokyo Commodity Exchange erased early gains and ended in the red as investors booked profits after a recent surge in prices, analysts said.
* Natural rubber prices rose early in trade tracking crude oil contracts on the New York Mercantile Exchange.
* Crude oil prices rose over 5% on NYMEX due to bargain-buying by investors after a recent sharp fall. Natural rubber prices take cues from crude oil as the latter is used to make synthetic rubber.
* The near-term outlook for rubber prices remains firm as global supply remains tight, largely due to unseasonal torrential rains and floods in the major rubber-growing regions of Thailand, Malaysia and India, said Satish Kumar, a trader in Kochi.
* Thailand, one of the largest rubber growers in the world, and parts of Malaysia reportedly experienced an extended rainy season due to La Nina, the Association of Natural Rubber Producing Countries said.
* Following are the highlights of today’s trade:
–The widely traded RSS-4 variety was quoted at 193-196 rupees per kg, up 1-2 rupees from the previous close.
–The most-active April contract on the TOCOM ended at 242.8 yen (about 160.73 rupees), down 0.9 yen from the previous close.
Edited by Vidhi Verma
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