New Delhi, Mar 1 (PTI) Natural rubber (NR) prices snapped its week-long losing streak today by rising Rs 3 to Rs 224 per kg in the domestic market, due to volatility in the international and domestic futures markets amid tight supplies in the physical markets.
The prices of NR yesterday in the domestic market at Kottayam were at Rs 221 per kg, according to the Rubber Board data.
"The volatility in the prices of NR at futures market, Tokyo Commodity Exchange (TOCOM) and back home at NMCE have spurred the rise in prices in the domestic physical market," Indian Rubber Dealers Association President George Valy told PTI.
Valy explained there has been a rise in the futures trade in NR at NMCE, which has led to a rise in prices.
"Also the farmers here are not releasing their produce despite an extended tapping season, which has led to a tightening of supply in the physical markets," Valy said.
He added that farmers are not releasing the supply as the difference between the international and domestic prices in the physical markets is about Rs 53 and they expect the prices to rise with the tightening of supplies.
The price of NR today at the Bangkok physical market was Rs 274.89 per kg.
NR prices had witnessed a fall all through the past week owing to the volatility in prices in the domestic and international futures markets and due to continued tapping of rubber juice.
International futures markets such as TOCOM and Shanghai saw a fall in prices mainly due to the decline in demand for NR from China. The domestic future markets also fell, taking cues from TOCOM and Shanghai.
Heavy rains in several parts of Central Kerala and Kottayam encouraged enhanced tapping activity due to more secretion in rubber trees, which again led to a weakening of prices in the domestic physical markets.
The prices of NR fell from Rs 240.50 per kg on February 21, the highest for the month to Rs 221 per kg on February 28, the lowest for the month.
(Source: http://in.news.yahoo.com/natural-rubber-prices-rise-rs-3-firm-global-20110301-061200-756.html)
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