Informist, Tuesday, Jul 26, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber slipped to a two-month low in key markets of Kerala due to weak demand from domestic bulk buyers. However, concerns over supply in the domestic market cushioned a steep fall in prices, traders said.
* Domestic supply remains tight as rain in key producing regions has affected tapping activity. Supply concerns will continue till mid-September, said Raju Varghese, the owner of Polachirayil Traders in Kottayam.
* Futures contracts of natural rubber on Japan’s Osaka Exchange erased early gains and ended lower due to concerns over demand from bulk buyers amid a rise in the global output of rubber, analysts said.
* Following a fresh resurgence of COVID-19 cases in China, sentiments were clouded by concerns over demand amid the growing risk of a global economic recession. China is the world’s top consumer of natural rubber.
* The global production of natural rubber in June was recorded at 1.11 mln tn, up 3.8% from the same period a year ago, the Association of Natural Rubber Producing Countries said in its report.
* Rubber prices rose marginally in early trade today, tracking gains in crude oil prices on the New York Mercantile Exchange. Natural rubber prices take cues from the movement in crude oil as it 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 170-171 rupees per kg, down 2 rupees from the previous day.
–The most-active December contract on the Osaka Exchange was down 0.6 yen at 239.0 yen (139.52 rupees) per kg.
US$1 = 79.78 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Vidhi Verma
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