The prices of rubber on the Kerala's major bourse of Kottayam
exhibited a declining trend during the week ended 29 August
on a fall in offtake, mainly from tyre- and tube-makers
in the state. But the arrivals strengthened during the
week, contributing largely to the bourse's southward journey,
bourse, which opened at Rs 48.75 on Monday, steadily dipped
during the week and posted Rs 47.50 on Friday, losing
Rs 1.25 in five days' time. The futures bourse in the
state also exhibited a similar trend during the week,
even though the prices on the bourse were more or less
steady, they add.
prices had skyrocketed during the past couple of weeks,
due to an increase in offtake, which was thanks to the
festive season in the country. The festive season began
with Independence Day and Janmashtami, followed by Ganesh
Chaturthi. And the Onam season has pushed the offtake
to abnormal highs.
coupled with the prices touching a zenith had made buyers
wary, who later called for a need-based buying. However,
buyers and planters expecting to cash in on the price
rally were seen pushing in even their stocks. The increase
in arrivals and the call for need-based buying pushed
the prices southwards, the traders say.
exporters were active during the past week, but with major
buyers, the tyre- and tube-makers resorting to need-based
buying, the offtake from the bourse took a beating. The
arrivals of RSS-4, the key market indicator, took a slight
beating by the fag end of the week.
supply had strengthened during the opening days of the
week, with the prices ruling as high as Rs 48.75. Sheet
rubber RSS-5 was the most sought-after variety during
the week, as cover purchasing posted increased interests
during the week.
rubber and other rubber products makers were also active
during the week, which helped in arresting the fall of
Latex 60% DRC and Ungraded prices. However, interests
for block rubber ISNR 20 also waned during the week.
The prices are expected to rise due to a fall in supplies
from the major procuring areas, predict analysts. They,
citing the state's meteorological department, say the
areas should receive a good rainfall during the coming
week. "This might affect tapping and processing activities,
resulting in a fall in supplies during the coming week."