Informist, Monday, Aug 9, 2021

By Rahul Dhuri

MUMBAI - Rubber prices in Kerala rose today due to a persistent supply crunch in the market amid renewed demand from domestic stockists. Frequent rainfall has hampered tapping activity in Kerala, which has disrupted supply, traders said.

* Fear of COVID-19 infections also weighed on supply as many small- and mid-sized land-holding farmers discouraged tappers from entering their farms, market participant said.

* A likely revival in demand from the automobile sector, a major consumer of rubber, could further support prices, said V.J. Mathew, the owner of Vadakkamuriyil House, based in Kottayam, Kerala.  

* Rubber prices on the Tokyo Commodity Exchange were unavailable as the market was shut on account of a local holiday. However, the outlook for rubber remains firm due to hope of recovery in global demand, analysts said.

* Prices of natural rubber are expected to rise in the near term due to improved demand from China, India, the US, and Europe, according to the Association of Natural Rubber Producing Countries.

* A supply crunch in the market is further seen supporting rubber prices as supply from Thailand, Indonesia, Vietnam, and Malaysia will remain constrained in the near term due to the alarming spread of COVID-19, it said.

 
* Following are the highlights of today's trade:

--The widely traded RSS-4 variety was sold at 174-175 rupees per kg in Kochi and Kottayam, up 1 rupee from Saturday.

--On Friday, the January contract on TOCOM ended at 223.2 yen (about 150.35 rupees) per kg.

End

Edited by Avishek Dutta

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