Informist, Tuesday, Nov 2, 2021
By Rahul Dhuri
MUMBAI – Prices of natural rubber in the key markets of Kerala extended Monday’s gains today due to concerns over supply amid rising demand from bulk buyers and domestic stockists, industry experts said.
* The delay in tapping due to heavy rains in Kerala, which is the biggest producer, is likely to create a supply crunch in the market, thereby supporting rubber prices, said V.J. Mathew, the owner of Vadakkamuriyil House based in Kottayam.
* Torrential rains in Kerala have devastated crops spread over 18,764.72 ha, leading to a loss of 2.81 bln rupees to farmers. Nearly 74,780 farmers in the state have been affected by landslides and flash floods, said Deepthi Varadan, a senior official at the state’s Department of Agriculture Development and Farmers’ Welfare.
* On the Tokyo Commodity Exchange, the April rubber contract ended higher tracking gains in crude oil prices. A likely fall in rubber output further supported the uptrend in rubber prices, analysts said.
* Crude oil prices on the New York Mercantile Exchange were higher in Asian trade today ahead of the ministerial meeting of the Organization of the Petroleum Exporting Countries and allies. Natural rubber prices take cues from crude oil as the latter is used to manufacture synthetic rubber.
* The Association of Natural Rubber Producing Countries has revised the outlook for world natural rubber production as member governments updated their figures for 2021. Lower growth is anticipated in world production at 1.4%, amounting to 13.787 mln tn, while global demand is expected to see 8.9% growth to 14.116 mln tn during 2021.
* Following are the highlights of today’s trade:
–The widely traded RSS-4 variety was quoted at 177-178 rupees per kg, up 1 rupee from Monday.
–The April contract on TOCOM ended at 227.8 yen (about 149.94 rupees), up 1.3 yen from the previous close. End
Edited by Snigdha Kuttikat
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