Informist, Monday, Mar 21, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber fell further today in Kerala due to tepid demand from domestic stockists. However, concerns about supply due to start of the lean season cushioned the fall in prices, traders said.
* Concerns over supply will remain as the lean season has started and is likely to continue till May. India’s natural rubber production may fall as heavy rains in Oct-Nov in Kerala, the country’s biggest producer, affected the peak tapping season, said experts.
* In the near term, rubber prices are likely to rise on expectations of a pick up in demand from bulk buyers and tailing gains in crude oil prices, said John Joseph, owner of J.J. Trading Co based in Ernakulam, Kerala.
* Oil prices are expected to trade firm on geopolitical risk premium as Yemen-based Houthi rebels launched missile and drone attacks on Saudi Arabia’s oil and liquefied natural gas facilities on Sunday.
* Natural rubber prices take cues from crude oil as the latter is used to manufacture synthetic rubber.
* Natural rubber prices on the Tokyo Commodity Exchange were unavailable today as the market is shut on account of Vernal Equinox Day. The bourse will resume trade on Tuesday.
Following are highlights of today’s trade:
–In the key markets of Kerala, the widely traded RSS-4 variety was sold at 170-171 rupees per kg, down 1 rupee from the previous day.
–On Friday, the most-active August contract of rubber on the Japanese bourse ended 2.9 yen up at 248.1 yen (158.69 rupees) per kg.
End
Edited by Pranav S. Joshi
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