Informist, Monday, Oct 10, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber in the key markets of Kerala rose to an over one-month high today due to rising demand from domestic stockists. However, expectation of a rise in arrivals capped the gains, traders said.
* Tepid demand from tyre making companies is also seen weighing on sentiment. Tyre companies are likely to refrain from buying domestically-produced rubber because a fall in ocean freight will make imports cheaper, said Joy Alencherry, owner of Kottayam-based J&J Trade Links.
* Futures contracts of natural rubber on Japan’s Osaka Exchange erased early gains and ended in the red as investors booked profits after the recent price surge. Expectation of peak seasonal supply in the global market further weighed on sentiment, experts said.
* Global supply of natural rubber is expected to rise as tapping is likely to gain pace and remain in full swing till January. Tyre companies may also go slow on purchases due to a likely downturn in the global economy.
* Natural rubber prices on Osaka Exchange rose in early trade today, tracking gains in crude oil prices. Crude oil is used in the manufacture of synthetic rubber.
* Crude oil prices rose last week after the Organization of the Petroleum Exporting Countries and its allies decided to cut production by 2 mln barrels per day in November.
Following are the highlights of today’s trade:
–The widely-traded RSS-4 variety was sold at 155-156 rupees per kg, up 1 rupee from the previous day. Kerala accounts for nearly 70% of India’s rubber production.
–The most active March contract of rubber on the Osaka Exchange was down 2.5 yen, at 232.0 yen (131.36 rupees) per kg.
End
Edited by Avishek Dutta
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