Informist, Tuesday, May 31, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber rose in the key markets of Kerala due to concerns over supply. However, tepid demand from domestic stockists and tyre makers capped sharp gains in rubber prices, traders said.
* Supply concerns persist as rains in Kerala, the largest producer of the commodity in the country, have hindered rubber tapping.
* The state accounts for nearly 70% of India’s natural rubber output. Continued unseasonal rains have disrupted latex harvesting in the state since mid-May, said Thaha Mohamed, the owner of Kottayam-based Sara Traders.
* On Sunday, the southwest monsoon set in over Kerala, three days ahead of the normal date of Jun 1, India Meteorological Department said. This is the earliest onset of the monsoon over Kerala in four years. The monsoon had hit Kerala coast on Jun 3 last year.
* “Therefore, harvesting will be disrupted again for about three months and the domestic rubber supply will remain low until the end of August, thereby, supporting prices,” said John Joseph, the owner of Ernakulam-based J.J.Trading Co.
* Futures contracts of natural rubber on Japan’s Osaka Exchange erased early gains and ended marginally lower today as investors booked profits after the recent surge in prices, analysts said.
* Rubber prices rose in the early trade today tracking gains in crude oil prices on the New York Mercantile Exchange. Natural rubber prices take cues from crude oil as the latter is used to manufacture synthetic rubber.
Following are the highlights of today’s trade:
–The widely-traded RSS-4 variety of rubber was sold at 172-173 rupees per kg, up 1 rupee from the previous day.
–The most-active November contract on the Japanese bourse ended down 0.2 yen at 249.8 yen (151.56 rupees) per kg.
End
Edited by Maheswaran Parameswaran
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