MUMBAI, April 6 (Reuters) - Indian rubber prices, which were hovering near record highs, are likely to soften this week after recent rains in growing areas triggered hopes of higher supplies in coming weeks, analysts said on Tuesday.
"Many parts of Kerala received rains in last two-three days. It will accelerate tapping," said Shiji Abraham, analyst with JRG Wealth Management.
"Arrivals will increase in next two weeks."
Kerala is the biggest producer of the rubber in India.
At 4:51 the benchmark May contract NMRUK0 on the National Multi-Commodity Exchange (NMCE) was down 1.1 percent at 16,203 rupees per 100 kg, after hitting a record high of 16,510 rupees in the previous session.
"The May contract may test support at 16,050 rupees," Shiji said.
Spot price of the most traded RSS-4 rubber (ribbed smoked sheet) hit a record high of 16,000 rupees in Kottayam, Kerala, on Tuesday as per data compiled by the Rubber Board.
Usually rubber supplies shrink in summer in India.
The most active Tokyo rubber futures contract rallied to a 20-month high on Tuesday before slipping as the yen's strength weighed and oil weakened, but tight physical supply kept support intact. See [ID:nSGE6350AO]
India's natural rubber production dropped 3.8 percent in 2009/10 due to adverse climatic conditions, but a rise in consumption during the period lifted the country's imports, the Rubber Board said on Tuesday. See [ID:nBMB010169] (Reporting by Rajendra Jadhav; Editing by Harish Nambiar)
(in.reuters.com)
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