Agri Business

Covid-19 second wave leaves rubber trading houses to remain closed

Aravindan Kottayam 10 May | Updated on May 11, 2021

The world supply during May 2021 is likely to remain low, however, it is expected to improve in June 2021

Spot rubber prices were not available on Monday as the local trading houses remained closed due to the total lockdown implemented by the Government of Kerala to prevent the rapid surge of Covid-19 cases in the State.

According to the Association of Natural Rubber Producing Countries (ANRPC), NR prices has the potential to improve in the short term , at least marginally, driven by the improved outlook on the demand and supply constraints. However, the continuing Covid-19 infections in India along with the slow progress of the vaccination drive can put cap on the demand growth as well as the recovery process.

The world supply during May 2021 is likely to remain low by matching with the average monthly supply during the three months from February to April 2021. However, the world supply is expected to improve in June 2021. Compared to May 2021, the production during June 2021 is expected to be 15.8 per cent higher.

In futures, the front month May delivery was up 1.13 per cent from Friday’s settlement price to close at ₹173.74 per kg with a volume of 27 lots on the Multi Commodity Exchange (MCX). According to analysts, the commodity is poised to test higher levels propelled by tight supplies, and sustained demand from industries such as automobile and healthcare.

SMR 20 weakened to ₹129.53 (130.28) while Latex improved to ₹118.09 (117.58) per kg at Kualalumpur.

The most active natural rubber contract for September delivery was up 75 Yuan (₹857.94) from previous day’s settlement price to close at 14,545 Yuan (₹166,383.62) a tonne in day time trading on Shanghai Futures Exchange (ShFE).

Published on May 10, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor