Informist, Friday, Sep 24, 2021
By Rahul Dhuri
MUMBAI – Natural rubber prices in the key markets of Kerala were at a two-month low today due to tepid demand from bulk buyers and domestic stockists. However, concerns about supply amid improved purchases from the industrial sector cushioned the fall, traders said.
* Heavy rainfall and rising COVID-19 cases in Kerala have disrupted tapping activity, leading to a tight supply situation, said Mathew Thomas, owner of Kallarakkal Agencies based in Ernakulam.
* On the global front, rubber contracts ended in the red today on the Tokyo Commodity Exchange, tailing weakness in crude oil contracts on New York Mercantile Exchange, said analysts.
* Futures contracts of crude oil on the NYMEX was down in Asian trade as China will release nearly 7.4 mln barrels of crude oil in the market today, which weighed on the sentiment. Natural rubber prices take cues from crude oil as the latter is used to manufacture synthetic rubber.
* Natural rubber prices take cues from crude oil as the latter is used to manufacture synthetic rubber.
* However, the near term outlook for rubber remains as the estimate for global demand for rubber has been scaled up, said analysts.
* In its August report, The Association Of Natural Rubber Producing Countries has marginally increased the global demand outlook for 2021 to 14.1 mln tn, up 9.3% from 2020. The association had estimated global demand in 2021 at 13.9 mln tn in its July report.
* Following are the highlights of today’s trade:
–The widely traded RSS-4 variety was sold at 169-170 rupees per kg, down 1 rupee from the previous close. Currently, prices are under pressure as they rose beyond 179 rupees per kg.
–The February contract on TOCOM ended at 200.0 yen (about 133.56 rupees), down 1 yen from the previous close. End
Edited by Maheswaran Parameswaran
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