India Rubber: Prices down in Kerala as near-term outlook bearish

0
508

By Rahul Dhuri

– Prices of natural rubber in key spot markets of Kerala were down today as the near-term sentiment remains weak due to a likely rise in arrivals, said. 

* Arrivals are expected to rise in the coming weeks as it is the peak production season. Tapping in key growing areas of Kerala is in full swing after the recent surge in rubber prices, said A.M. George, owner of Kerala-based George Rubbers.

* are likely to bring more of their produce to the to avail better prices but trade is likely to remain subdued ahead of Christmas and New Year holidays, said Anu Pai, an analyst at Geojit .

Article continues below Advertisement...

* However, improved demand from domestic stockists and bulk buyers cushioned a sharp fall in prices, traders said.

* On the global front, benchmark rubber contracts on Tokyo Commodity Exchange ended higher on concerns over supply in the global market, said Akshay Agarwal, managing director of Acumen Capital.

* Concerns over lower output persists across because of labour shortage, recent floods, and unfavourable weather conditions in Thailand and Vietnam.

* For 2020, the Association of Natural Rubber Producing Countries has further scaled down its output to 12.59 mln tn, compared with 12.90 mln tn pegged in September. The current estimate reflects a 9% from the previous year.

* Expectations that the roll out of COVID-19 vaccines will likely aid recovery in the global economy is further seen supporting rubber prices on TOCOM. 

* Following are highlights of today’s trade:

  –In Kochi and , the widely-traded RSS-4 variety was sold at 157-158 rupees per kg, down 1-2 rupees from Monday.

  –The most active May contract settled at 245.0 yen (about 173.39 rupees), up 1 yen, on TOCOM.  End

Edited by Maheswaran Parameswaran

LEAVE A REPLY

Please enter your comment!
Please enter your name here