India Rubber: Prices rise in Kerala tracking global market

Informist, Monday, Oct 11, 2021

By Rahul Dhuri

MUMBAI – Natural rubber prices in the key markets of Kerala rose today tracking gains in the global market where prices rose due to a rise in crude oil prices. Improved demand from domestic stockists and bulk buyers also supported the uptrend in rubber prices, traders said.

* However, a likely rise in rubber output capped sharp gains. The peak production season has started in Kerala, said Thaha Mohamed, the owner of Sara Traders based in Kottayam.

* Kerala, the country’s traditional rubber growing region, accounts for 55-60% of India’s annual natural rubber output, industry experts said.

* In India, natural rubber output in October is seen at 79,000 tn as against 67,000 tn a month ago. Removal of COVID-19 restrictions in Kerala has considerably eased farm management operations, labour availability, and the supply network, the Association of Natural Rubber Producing Countries said.

* On the Tokyo Commodity Exchange, rubber contracts ended sharply higher tracking gains in crude oil prices. Natural rubber takes cues from crude oil as the latter is used to make synthetic rubber.

* Crude oil prices on New York Mercantile Exchange rose in Asian trade today due to an increase in demand amid reopening of the economy and supply constraints in the market, said analysts.

* Following are the highlights of today’s trade:
–The widely traded RSS-4 variety was quoted at 169-170 rupees per kg, up by 1 rupee from the previous close.
–The March contract on TOCOM ended at 226.8 yen (about 151.53 rupees), up 5.8 yen from the previous close.

End

Edited by Akul Nishant Akhoury

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Source: Cogencis