Informist, Friday, Jun 3, 2022

By Rahul Dhuri

MUMBAI - Prices of natural rubber in the key markets of Kerala rose today due to concern over supply amid rising demand from domestic stockists. The state accounts for nearly 70% of India's natural rubber output, traders said.

* Rains in Kerala, the largest producer of the commodity in the country, have hindered tapping. Since mid-May, continuous unseasonal rains have disrupted latex harvesting in the state, said C.J. Augustine, owner of Chettiparambil Traders in Idukki.

* However, tepid demand from domestic stockists and tyre makers capped sharp gains in rubber prices,  Augustine added.

* Futures contracts of natural rubber on Japan's Osaka Exchange erased early gains and ended marginally lower today tailing weakness in crude oil prices on the New York Mercantile Exchange, analysts said.

* Natural rubber prices take cues from crude oil, as the latter is used to manufacture synthetic rubber. 

* Rubber prices rose in early trade due to expectation of a rise in global demand. Demand from China, which accounts for 42% of the global demand for natural rubber, is expected to pick up, as COVID-19 curbs in Shanghai, the country's economic centre and a global trade hub, were eased after a two-month lockdown. 

Following are the highlights of today's trade:

--In the key markets of Kerala, the widely traded RSS-4 variety of rubber was sold for 175-176 rupees per kg, up 1 rupee from Thursday.

--The most-active November contract on the Japanese bourse ended 0.1 yen lower at 259.7 yen (155.02 rupees) per kg.

End

Edited by Tanima Banerjee

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