Informist, Wednesday, Jul 20, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber extended Tuesday’s fall in key markets of Kerala due to weak demand from bulk buyers. However, tight supply limited the fall in prices, traders said.
* There are supply concerns as rain in key producing regions has affected tapping activity. Supply concerns will continue till mid-September, said Raju Varghese, the owner of Kottayam-based Polachirayli Traders.
* In the global market, prices of natural rubber closed higher on Japan’s Osaka Exchange due to value buying by investors after the recent fall in prices, analysts said.
* However, the near-term outlook remains weak due to concerns about demand from major global buyers. A rise in global output amid waning demand for natural rubber latex from major importing countries is also seen weighing on the sentiment, industry experts said.
* There are demand concerns due to a rise in COVID-19 cases in China and the growing risk of a global economic recession, market participants said.
* China is the world’s top consumer of natural rubber.
Following are the highlights of today’s trade:
–In Kerala, which accounts for nearly 70% of India’s natural rubber output, the widely-traded RSS-4 variety was sold at 172-173 rupees per kg, down 1 rupee from the previous day.
–The most-active December contract on the Osaka Exchange was up 1 yen at 240.5 yen (139.62 rupees) per kg.
End
US$1 = 79.99 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Namrata Rao
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