Informist, Tuesday, Mar 22, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber in Kerala rose today due to fresh demand from domestic stockists amid concerns about supply. Demand from domestic buyers rose due to value buying after the recent fall in prices, traders said.
* The concerns about supply will continue as the lean production season has started in Kerala, said Annu Pai, an analyst at Geojit Financial Services Ltd.
* 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, industry experts said.
* A rise in prices of rubber in the global market further supported the uptrend in the domestic market, said Mathew Thomas, the owner of Kallarakkal Agencies based in Ernakulam.
* On the Tokyo Commodity Exchange, futures contracts of natural rubber rose to a two-week high in Asian trade today due to a weak yen against the US dollar and firm demand outlook for the commodity, said analysts.
* Prices were also supported by tight supply amid the wintering season in the southern parts of Thailand.
* Rubber contracts also rose, tracking gains in crude oil contracts on the New York Mercantile Exchange. Crude oil prices rose on the NYMEX in Asian trade as the European Union mulled banning Russian oil imports over its invasion of Ukraine. Natural rubber prices take cues from crude oil as the latter is used to manufacture synthetic rubber.
* The Association of Natural Rubber Producing Countries expects global consumption to increase 1.2% to 14.2 mln tn in 2022. The demand for natural rubber is likely to rise from the healthcare sector, as well as due to positive automobile sales growth in major economies.
Following are highlights of today’s trade:
–In the key markets of Kerala, the widely-traded RSS-4 variety was today sold at 171-172 rupees per kg, up 1 rupee from the previous day. In the coming week, rubber prices are seen at 167-178 rupees per kg, market participants said.
–The most-active August contract of rubber on the Japanese bourse ended 0.2 yen up at 251.8 yen (158.83 rupees) per kg.
End
Edited by Tanima Banerjee
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