Informist, Wednesday, Jul 13, 2022
By Rahul Dhuri
MUMBAI – The prices of natural rubber fell in the key markets of Kerala as sentiment remains weak due to concerns about demand in the domestic and global markets. However, tight supply cushioned the fall in prices, traders said.
* Tepid demand from bulk buyers amid waning demand for natural rubber latex from major importing countries weighed down prices. However, rain in key producing regions have affected tapping, leading to concerns about supply, said Raju Varghese, owner of Polachirayil Traders in Kottayam.
* In the global market, futures contracts of natural rubber on Japan’s Osaka Exchange rebounded from early losses and ended marginally higher tracking gains in crude oil prices, analysts said.
* Rubber prices were down in early trade as investors booked profits after the recent surge in prices. Concerns over demand from bulk buyers further weighed down rubber prices, said market participants.
* Sentiments are clouded by concerns over demand from China as COVID-19 cases in the country continued to climb, as well as waning demand for natural rubber latex from major importing countries and the growing risk of a global economic recession, industry experts said.
* 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 at 175-176 rupees per kg, down 1 rupee from the previous day.
–The most active December contract on Osaka Exchange was up 0.5 yen at 244.3 yen (141.76 rupees) per kg.
Edited by Michael Correya
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