Informist, Wednesday, Jul 27, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber slipped to an eleven-week low in key markets of Kerala due to dwindling demand from domestic bulk buyers and stockists. Early weakness in the global market further weighed on sentiment in the spot market.
* However, concerns over supply in the domestic market cushioned a steep fall in prices, traders said.
* There are concerns about supply as rain in key producing regions has affected tapping activity. These concerns will be there till mid-September until tapping gains pace, said Joy Alencherry, owner of J&J Trade Links in Kerala.
* In the global market, the most active December contract of natural rubber on Japan’s Osaka Exchange recouped losses and ended marginally higher due to value buying investors after the recent fall in prices. Gains in crude oil prices further supported the uptrend, analysts said.
* Natural rubber prices take cues from the movement in crude oil as it is used to manufacture synthetic rubber.
* Rubber prices were down in the early trade today, as sentiment remained weak due to tepid demand from bulk buyers amid a rise in global output, analysts said.
* Following a fresh resurgence of COVID-19 cases in China, sentiment were clouded by concerns over demand. China is the world’s top consumer of natural rubber.
* The global production of natural rubber in June is recorded at 1.11 mln tn, up 3.8% from the same period a year ago, the Association of Natural Rubber Producing Countries said in its report.
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 169-170 rupees per kg, down 1 rupee from the previous day.
–The most active December contract on the Osaka Exchange was up 0.5 yen at 238.5 yen (139.68 rupees) per kg.
End
US$1 = 79.89 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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