Natural-rubber output in India, the fourth-biggest producer, gained 2.8% in the 10 months through January as favourable weather and record prices boosted production, the state-run Rubber Board said.
Production totaled 749,950 tonne in the April-January period, compared with 7,29,250 tonne a year earlier, the board said in an e-mailed statement on Monday. Output was 98,800 tonne last month, little changed from 97,500 tonne a year earlier, it said.
Rubber prices in India climbed to a record this year as supplies from Thailand, Indonesia and Malaysia, the top growers representing 70% of global supply, were curbed by rain, while rising car sales boosted demand for tyres. Futures have gained 18% on the Tokyo Commodity Exchange to a record this year, extending last year’s 50% rally.
“Overall, the bullish price structure continues, and it will be a while before prices ease substantially,” Anand James, chief analyst at brokerage Geojit Comtrade, said in an interview. “Sellers were inclined to hold back their stocks in anticipation of lean-season demand, with Thailand, India and Indonesia entering wintering period,” he said.
Prices in India may reach Rs 270 a kg between March and May as demand from tyre makers remains firm, he said. Immediate-delivery rubber prices gained 0.4% to Rs 23,800 per 100 kg on Monday, according to data from the Multi Commodity Exchange of India.
(Source: http://www.financialexpress.com/news/rubber-output-rises-on-record-prices-weather/747246/0)
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