By Rahul Dhuri
MUMBAI – Prices of natural rubber in the key spot markets of Kerala rose today, tracking the global market. However, the near-term sentiment in the domestic market remains weak as arrivals are seen rising in the coming weeks as it is the peak production season.
* On the Tokyo Commodity Exchange, rubber contracts rose in the early trade today following reports of Moderna’s vaccine getting nod for roll out from the US Food and Drug Administration, analysts said. The roll out of vaccines is likely to aid in recovery of the global economy.
* Concerns over supply in the global market further supported gains on TOCOM. Concerns over lower output persists across Southeast Asia because of labour shortage, recent floods, and unfavourable weather conditions in Thailand and Vietnam, said Akshay Agarwal, managing director of Acumen Capital.
* However, the most-active May contract ended a tad lower due to profit-booking by market participants, analysts said.
* Back home, tapping in key growing areas of Kerala is underway in full swing after the recent surge in rubber prices, said Joy Alencherry, owner of Maria Rubber Links based in Kottayam.
* Farmers are likely to bring more of their produce to the market 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 Financial Services.
* 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 Tuesday.
–The most active May contract settled at 239.6 yen (about 170.68 rupees), down 0.9 yen, on TOCOM. End
Edited by Maheswaran Parameswaran