India Rubber: Prices up in Kerala on value buying post recent fall

The price of natural rubber rose in Kerala due to value buying by market participants after a recent fall in prices.

* However, the outlook remains bleak as demand from tyre makers and bulk buyers was muted due to rising cases of COVID-19, which have hit operations, said Mathew Thomas, owner of Kallarakkal Agencies based in Kerala.

* A likely rise in supply is also seen weighing on rubber prices, traders and market participants said.

* "Tapping is in full swing and supply is expected to rise from this week as rains have withdrawn," said Satish Abraham, president of the Association of Latex Producers of India.

* Rubber contract on the Tokyo Commodity Exchange ended up today, tracking gains in the benchmark contract on Shanghai Futures Exchange and recovery in global demand, especially from China, analysts said.

* In Jul-Sep, China is anticipated to have consumed 1.38 mln tn, which nearly matches the quantity of 1.39 mln tn consumed during the same quarter of the previous year, the association said in its latest report.

* China is the world's largest consumer of natural rubber.

* Following are highlights of today's trade:

 –In Kochi and Kottayam, the widely-traded RSS-4 variety was quoted at 132-133 rupees per kg, up 1-2 rupee from Saturday, traders said.

 –The most-active March contract on the Japanese bourse settled at 199.4 yen (about 138.56 rupees) per kg, up 1 yen from the previous close.