Informist, Monday, Jul 25, 2022
By Rahul Dhuri
MUMBAI – Prices of natural rubber rose in the key markets of Kerala due to concerns over supply in the domestic market. However, weak demand from domestic bulk buyers capped the gains, traders said.
* Domestic supply remains tight as rain in key producing regions has affected tapping activity. Supply concerns will continue till mid-September, said Raju Varghese, the owner of Polachirayil Traders in Kottayam.
* Gains in the global market also supported prices in the domestic market. Futures contracts of natural rubber on Japan's Osaka Exchange rose today due to value buying by investors after the recent fall in prices. However, a fall in crude oil prices the rise in rubber prices, analysts said.
* The near-term outlook for rubber remains weak due to a rise in global output amid concerns over demand from China owing to a rise in COVID-19 cases. The growing risk of a global recession is further seen weighing on sentiment, experts 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, up 1 rupee from the previous day.
--The most active December contract on the Osaka Exchange was up 1.6 yen at 239.5 yen (140.28 rupees) per kg.
End
US$1 = 79.73 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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