Informist, Monday, Feb 14, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber rose in key markets of Kerala due to concerns over supply as the peak tapping season has ended. However, sluggish demand from bulk buyers capped sharp gains, traders said.
* “The global natural rubber market has entered the season of low supply coinciding with the annual wintering or ‘refoliation’ of rubber trees occupying the north of the equator,” said Jom Jacob, an independent analyst and former senior economist at the Association of Natural Rubber Producing Countries.
* Natural rubber prices on the Tokyo Commodity Exchange erased early gains and ended lower as investors booked profits after prices hit a 33-week high in the early trade today, analysts said.
* Rubber prices on TOCOM rose in the early trade, tracking gains in prices of crude oil on the New York Mercantile Exchange and on expectation of stronger demand for rubber.
* Resumption of economic activities in China by mid-February are seen supporting natural rubber prices. China represents around 43% of the global demand for natural rubber.
* Prices of crude oil rose on the NYMEX in Asian trade today as escalating fears of invasion of Ukraine by Russia added to concern over tight global crude oil supply. Natural rubber prices take cues from crude oil as it is used to manufacture synthetic rubber.
* Following are the highlights of today’s trade:
–The widely traded RSS-4 variety was sold at 166-167 rupees per kg, up 1 rupee from the previous day.
–The July contract on the TOCOM ended at 255.4 yen (167.35 rupees), down 2.2 yen from the previous close. End
Edited by Deepshikha Bhardwaj
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