Informist, Thursday, Sep 23, 2021
By Rahul Dhuri
MUMBAI – Natural rubber prices in the key markets of Kerala extended Wednesday's fall today, as the near-term outlook remains weak due to sluggish demand from domestic stockists and bulk buyers, traders said.
* However, concerns about supply amid improved purchases from the industrial sector cushioned the fall.
* Heavy rainfall and rising COVID-19 cases in Kerala have disrupted tapping activity, leading to a tight supply situation, said Raju Varghese, owner of Polachirayil Traders based in Kottayam.
* On the global front, rubber contracts ended higher today on the Tokyo Commodity Exchange, tracking gains in crude oil contracts on New York Mercantile Exchange, and as the estimate for global demand for rubber has been scaled up, said analysts.
* In its August report, The Association Of Natural Rubber Producing Countries has marginally increased the global demand outlook for 2021 to 14.1 mln tn, up 9.3% from 2020. The association had estimated global demand in 2021 at 13.9 mln tn in its July report.
* Futures contracts of crude oil on the NYMEX rose, as inventory data from the Energy Information Administration supported prices of the commodity. Natural rubber prices take cues from crude oil as the latter is used to manufacture synthetic rubber.
* Following are the highlights of today's trade:
--The widely traded RSS-4 variety was sold at 170-171 rupees per kg, down 1 rupee from the previous close.
--The February contract on TOCOM ended at 200.0 yen (about 134.04 rupees), up 3.3 yen from the previous close. End
Edited by Pranav S. Joshi
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