By Rahul Dhuri
MUMBAI – Prices of natural rubber rose in the key markets of Kerala tracking gains in the global market. Improved demand from domestic bulk buyers and tyremakers further supported gains in rubber prices, traders said.
* Concerns over supply in the global market further supported gains on TOCOM. Worry over lower output persists across Southeast Asia because of labour shortage, recent floods, and unfavourable weather conditions in Thailand and Vietnam.
* However, the most-active May contract ended in the red due to profit-booking by market participants after the contract traded 4% higher today, analysts said.
* Back home, demand for tyres will be driven by growth in the automobile sector, following an uptick in rural sales and increased preference for personal transport amid the pandemic, said Raju Varghese, the owner of Polachirayil Traders based in Kottayam.
* However, expectations of a rise in arrivals in the coming weeks capped sharp gains. Arrivals are expected to rise as it is peak production season and tapping in the key growing areas of Kerala is in full swing after the recent surge in prices, market participants said.
* Following are highlights of today’s trade:
–In Kochi and Kottayam, the widely-traded RSS-4 variety was sold at 158-159 rupees per kg, up 1-2 rupees from Saturday.
–The most active May contract settled at 238.6 yen (about 169.13 rupees), down 1.3 yen, on TOCOM. End
Edited by Maheswaran Parameswaran