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India Rubber: Prices extend fall in Kerala on decline in local demand

Informist, Friday, Jul 8, 2022

 

By Rahul Dhuri 

 

MUMBAI – Natural rubber prices fell for the fourth straight day in key markets of Kerala due to sluggish demand from domestic stockists. However, concerns over supply cushioned a sharp fall in prices, traders said.

 

* Rains in key producing regions have affected tapping activity, which is expected to support prices. Gains in the global markets further supported sentiment in the domestic market, said Joy Alencherry, owner of J&J Trade Links based in Kerala.

 

* Futures contracts of natural rubber on Japan’s Osaka Exchange rose marginally today due to short-covering by investors after witnessing a fall in the past three sessions, mainly due to concerns over demand, analysts said.

 

* Gains in rubber contracts on the Shanghai Futures Exchange and weakness in the yen against the dollar further supported prices. A weak Japanese currency makes yen-denominated rubber cheaper for buyers holding other currencies.

 

* However, a fall in crude oil prices on the New York Mercantile Exchange capped sharp gains in rubber prices. Natural rubber prices take cues from movement in crude oil as the latter is used to manufacture synthetic 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 176-177 rupees per kg, down 1 rupee from the previous day.

–The most active December contract on Osaka Exchange was up 0.2 yen at 247.9 yen (247.9 rupees) per kg. 

 

End

 

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

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© Informist Media Pvt. Ltd. 2022. All rights reserved.

Source: Cogencis

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