Market and product
India rubber seen rangebound; eyes overseas cues
The benchmark March rubber on India’s National Multi-Commodity Exchange (NMCE) provisionally closed up 1 rupee at 19,170 rupees per 100 kg.
“Supply situation is very comfortable. Earlier this month many places in Kerala got unseasonal rainfall. It will allow farmers to collect more latex,” said George Valy, president of the Indian Rubber Dealers Federation.
India’s natural rubber imports in January surged 223 percent on year to 26,375 tonnes, while production during the month rose 3.7 percent on year to 102,500 tonnes, the state-run Rubber Board said.
The world’s fourth-biggest producer also imports natural rubber from Thailand, Indonesia, Malaysia and Vietnam.
The price of the most-traded RSS-4 rubber (ribbed, smoked sheet) in the Kottayam market in Kerala eased 100 rupees to 18,750 rupees per 100 kg on Tuesday.
Rubber production in India peaks during Oct-Jan and starts falling from February due to winter season.
Key Tokyo rubber futures ended slightly higher for a second consecutive session on Tuesday but volume was lighter and prices were locked in a narrow range, with investors waiting to see the timing of the Thai government’s intervention.
The Thai government has approved a 15 billion baht budget to buy unsmoked rubber sheet (USS3) from farmers at 120 baht per kg in a bid to prop up prices, a senior agriculture ministry official said. (Reporting by Rajendra Jadhav; Editing by Rajesh Pandathil)
