Informist, Monday, Aug 8, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber in the key markets of Kerala rose today due to fresh demand from domestic stockists. Concerns over supply amid an expected rise in domestic bulk demand also supported the prices, traders said.
* Supply concerns persist as rain in key producing regions has affected tapping activity. These concerns will persist till mid-September when tapping is likely to pick up pace, said Raju Varghese, the owner of Polachirayil Traders in Kottayam.
* In the global market, the most active January contract of natural rubber on Japan’s Osaka Exchange was up today because of weakness in the yen against the dollar, said analysts.
* A weak Japanese currency makes the yen-denominated rubber cheaper for buyers holding other currencies. A rise in crude oil prices on the New York Mercantile Exchange further supported rubber prices. Rubber prices take cues from crude oil as it is used to manufacture synthetic rubber.
* However, the near-term outlook for rubber remains weak due to a rise in global output and weak demand from bulk buyers across the globe. Investor sentiment remained clouded due to concern over demand amid growing risk of a global economic recession, analysts said.
* Global production of natural rubber in June was 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.
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 169-170 rupees per kg, up 1 rupee from the previous day.
–The most active January contract on the Osaka Exchange was up 0.2 yen at 232.8 yen (232.8 rupees) per kg.
US$1 = 79.66 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Sushmita Mukherjee
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