NMCE Rubber may drop on good rain, ample imports

KOCHI (Commodity Online): Natural Rubber in India’s National Multi Commodity Exchange (NMCE) may fall in coming days on the back of improved production in the major growing areas due to recent good amount of rains amid ample imports from Malaysia and other producers.

Presently, In NMCE, the rubber futures is trading higher tracking the global movements.

But the sluggish demand from domestic tyres makers due to ample supply from Malaysia is likely to put pressure over the prices. In addition, the recent rains in the major growing areas in Kerala is expected to improve the production of natural rubber in the country.

All this factors is likely to pull the prices further downwards in the domestic market.

Globally, the rubber prices have moved up on the back of improved crude oil prices and surge in Euro against the USD and Japanese Yen, which encouraged the investors to invest in riskier assets like rubber.

On Tuesday, the rubber prices in both global as well as in domestic exchanges remained subdued as the Brent crude oil prices dropped to a near-17-month low below $95 a barrel, which lowered the price of synthetic rubber.

Crude oil is used to manufacture synthetic rubber. If crude oil price rise synthetic rubber turns costly so natural rubber futures rises in exchanges and vice versa.

In Tokyo Commodity Exchange (TOCOM), rubber for July delivery traded up 1.3 yen to 256.4 yen per Kg and in NMCE, the commodity rose to Rs 18810 per ton on 20th June at 12:15 IST.

Source: http://www.commodityonline.com/news/nmce-rubber-may-drop-on-good-rain-ample-imports-48643-3-48644.html