By Rahul Dhuri
MUMBAI – Prices of natural rubber in the key markets of Kerala hit an over one-month high today tracking gains in the global market, traders said.
* Rubber prices in the global market rose as sentiment remains firm due to concerns over lower output across southeast Asia on account of labour shortages, floods and unfavourable weather conditions in Thailand and Vietnam, said Akshay Agarwal, managing director, Acumen Capital Markets India Ltd.
* Back home, rising demand from domestic stockists and tyre makers further supported rubber prices, traders said.
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* Demand for tyres will be driven by growth in the automobile sector following an uptick in rural sales, increased preference for personal transport and festival season demand, said Thaha Mohamed, the owner of Sara Traders based in Kerala.
* However, a likely rise in supply in the domestic market capped the sharp rise in prices. Supply of natural rubber is likely to rise as peak production season and tapping is in full swing in key growing areas of Kerala, the largest rubber producer in the country, traders said.
* Following are highlights of today’s trade:
–In Kochi and Kottayam, the widely-traded RSS-4 variety was sold at 161-162 rupees per kg, up 1-2 rupees from Saturday.
–The most active May contract settled at 252.7 yen (about 178.30 rupees), up 3.6 yen on the Japanese bourse. End
Edited by Nidhi Chugh
