India Rubber: Prices fall in Kerala on tepid bulk buys, down on TOCOM

Informist, Tuesday, Feb 15, 2022

By Rahul Dhuri

MUMBAI – Prices of natural rubber in key markets of Kerala were down today as demand from bulk buyers remains weak. A fall in the global market further weighed on prices, but concerns over supply cushioned the decline, traders said.

* Concerns over supply persist as the peak tapping season has ended, said John Joseph, owner of Kerala’s Ernakulam-based J.J.Trading Co.

* “The global natural rubber market has entered the season of low supply coinciding with the annual wintering or ‘refoliation’ of rubber trees occupying the north of the equator,” said Jom Jacob, an independent analyst and former senior economist at the Association of Natural Rubber Producing Countries.

* Natural rubber prices on the Tokyo Commodity Exchange ended lower as investors booked profits after prices hit a 33-week high on Monday, Weakness in crude oil prices further weighed on rubber prices, analysts said.

* Crude oil prices on the New York Mercantile Exchange were down in early Asian trade today, as investors booked profits after the recent surge in prices. Natural rubber prices take cues from crude oil as it is used to manufacture synthetic rubber. 

* However, the near-term outlook for rubber remains firm due to seasonally low supply and resumption of economic activities in China, industry experts said.
 

* Following are the highlights of today’s trade:

–The widely traded RSS-4 variety was sold at 165-166 rupees per kg, down 1 rupee from the previous day.

–The July contract on the TOCOM ended at 252.6 yen (164.75 rupees), down 1.6 yen from the previous close. End 

Edited by Maheswaran Parameswaran

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Source: Cogencis