Informist, Friday, Jan 7, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber today fell to a one-week low in the key markets of Kerala due to sluggish demand from bulk buyers amid rising cases of the Omicron variant of COVID-19, traders said.
* However, lower arrivals in the domestic market cushioned the fall in rubber prices, said A.M. George, owner of Ernakulam-based St. George Rubbers.
* Benchmark rubber contracts on the Tokyo Commodity Exchange negated early gains and ended in the red as investors booked profits after the recent surge in prices, analysts said.
* In early Asian trade, futures contracts of natural rubber rose on the TOCOM due to forecast of a rise in global demand, especially from China, one of the largest consumers of the commodity.
* Gains in crude oil prices on the New York Mercantile Exchange further supported rubber prices. Natural rubber prices take cues from crude oil as it is used to manufacture synthetic rubber.
* Consumption in China is expected to rise on account of pre-Lunar New Year demand. China is expected to consume around 500,000 tn of rubber in December and January, according to the Association of Natural Rubber Producing Countries.
* Following are the highlights of today’s trade:
–In the key markets of Kerala, the widely traded RSS-4 variety was sold at 163-164 rupees per kg, down 2-3 rupees from the previous close.
–Most-active June contract on TOCOM ended at 241.1 yen (154.63 rupees), down 0.3 yen from the previous close.
End
Edited by Tanima Banerjee
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Source: Cogencis
