Informist, Wednesday, Jul 6, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber fell in the key markets of Kerala as demand from domestic stockists was weak after prices rose to a seven-month high on Monday. Weakness in the global market also weighed on sentiment in the domestic market.
* However, the outlook remains firm due to concerns over supply and higher demand from the tyre-making industry, said Raju Varghese, the owner of Kottayam-based Polachirayil Traders.
* Lower availability of raw material is seen supporting prices as rains in key producing regions have affected tapping activity, traders said.
* Futures contracts of natural rubber on Japan’s Osaka Exchange reversed early losses and ended higher today due to value buying by investors after the recent fall in prices. Gains in crude oil prices also supported prices, analysts said.
* Natural rubber prices take cues from movement in crude oil as the latter is used to manufacture synthetic rubber.
* Rubber prices were down in early trade due to strength in the yen against the dollar, which makes the yen-denominated rubber expensive for buyers holding other currencies.
* Weak benchmark rubber contract on Shanghai Futures Exchange and concerns about demand from China owing to rising COVID-19 cases had also weighed on rubber prices. China is the top consumer of natural rubber.
Following are the highlights of today’s trade:
–In Kerala, which accounts for nearly 70% of India’s natural rubber output, the widely traded RSS-4 variety was sold for 178-179 rupees per kg, down 1 rupee from the previous day.
–The most-active December contract on Osaka Exchange was up 1.4 yen at 251.0 yen (146.70 rupees) per kg.
Edited by Avishek Dutta
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