Commodities

Fresh buying lifts rubber

Our Correspondent Kottayam | Updated on October 22, 2021

Supply woes, on account of heavy rains, too, supported the gains

Spot rubber continued to make moderate gains on Thursday. The commodity edged up mainly on fresh buying as certain companies from the tyre and non-tyre sectors were offering higher rates for RSS grades since a couple of days.

As per reports, the domestic supply of NR will be low in short term as the State’s traditional rubber growing region, including the key rubber-producing districts, are badly hit by unseasonal downpours, devastating flash floods, and landslides.

RSS-4 improved to ₹172.50 (172) and ₹172 (171.50) per kg respectively, according to traders and the Rubber Board. The grade firmed up to ₹167 (166.50), according to dealers. The volumes were low.

Latex prices

The progress made in vaccination drive across countries can have a negative bearing on the demand for rubber gloves as well as the glove prices, reports the Association of Natural Rubber Producing countries (ANRPC). This may weigh on latex prices. The recent capacity addition in nitrile across countries, particularly in China, can also impact on the demand for latex from the glove manufacturing industry. The developments in the latex market often pass on to RSS market as well.

In futures, the front month October delivery was down 0.91 per cent from Wednesday’s settlement price to close at ₹173 per kg with a volume of 5 lots on the Multi Commodity Exchange (MCX).

RSS-3 (spot) firmed up to ₹144.50 (142.16) per kg at Bangkok. SMR20 flared up further to ₹139.22 (135.77) and Latex to ₹99.27 (96.87) per kg at Kuala Lumpur.

The natural rubber contract for the November delivery was up 0.75 per cent from previous day’s settlement price to close at 14.08 Yuan (₹164.77) per kg with a volume of 4,835 lots in day time trading on Shanghai Futures Exchange (ShFE).

Spot rubber rates (₹/kg): RSS-4:172.50 (172), RSS-5: 169.50 (169), ISNR20: 161.50 (161) and Latex (60% drc): 123 (122.50).

Rubber Board campaign

The Rubber Board is launching a mass contact programme ‘Campaign 2021’, aiming at increasing production and productivity of natural rubber in the country. The objective of the campaign is to make India self sufficient in domestic NR requirements. KN Raghavan, Executive Director, Rubber Board will inaugurate the programme on Friday, October 22 at 11 am through Facebook live on the Board’s official Facebook page (facebook. com/rubberboard).

The theme of the campaign is ‘Resurgence in rubber for Aatmanirbhar Bharath’. Board is expected to contact 50,000 farmers through 2,500 meetings arranged across the country. The campaign will be held either by group meetings or through online meetings. According to a press release issued by the Board, the meetings will be conducted in strict compliance with the Covid-19 protocol.

Published on October 21, 2021

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