Informist, Tuesday, Nov 30, 2021
By Rahul Dhuri
MUMBAI – Natural rubber prices in the key markets of Kerala fell as domestic stockists refrained from buying after prices rose to an over eight-year high on Monday, traders said.
* However, the near-term outlook for rubber prices remains firm as heavy rainfall in the state hindered rubber tapping and transport has been severely hit, resulting in a supply crunch. Similarly, many cultivators are holding back the stock, anticipating high prices, said Mathew Thomas, the owner of Kallarakkal Agencies based in Ernakulam.
* The peak tapping season in Kerala, the country’s largest rubber producer, begins in October and continues till January.
* Rains impaired output in October and November, though official data is yet to come. Production is not expected to exceed 45,000-50,000 tn compared with an average output of 75,000 tn each month, according to the Automotive Tyre Manufacturers Association.
* On the other hand, consumption is anticipated to remain over 100,000 tn in each of these months. The deficit will be a major concern for the tyre industry, which mops up nearly 75% of the country’s output, the association’s Director General Rajiv Budhraja said.
* On the global front, rubber contracts on the Tokyo Commodity Exchange ended marginally lower today due to profit booking and tracking the benchmark contract on the Shanghai Futures Exchange, analysts said.
* However, tight global supply due to unseasonal torrential rains and floods in the major rubber-growing regions of Thailand, Malaysia, and India are likely to support prices.
* Thailand, one of the largest rubber growers in the world and parts of Malaysia reportedly experienced an extended rainy season due to La Nina, the Association of Natural Rubber Producing Countries said.
* Following are the highlights of today’s trade:
–The widely traded RSS-4 variety was quoted at 192-194 rupees per kg today, down by 1-2 rupees from the previous close.
–The most-active April contract on the TOCOM ended at 236.6 yen (about 157.61 rupees), down 0.2 yen from the previous close.
End
Edited by Maheswaran Parameswaran
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