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| Natural rubber prices hit record high |
| George Joseph / Kochi Feb 23, 2010, 00:48 IST |
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Natural rubber (NR) prices again touched an all-time high today. The benchmark grade RSS-4 was today quoted at Rs 142 a kg in Kochi and Kottayam markets. The prices had last touched this level on August 29, 2008.
During the last one year, RSS-4 prices have increased 100 per cent. The strongly bullish market is now poised for further rise in prices and the RSS-4 may breach the Rs 150-a-kg mark soon.
The local market is moving in tandem with global markets especially that of Singapore (SICOM) and Bangkok counters. SICOM today quoted RSS-4 at Rs 148.86 a kg, which is also a record level.
Majority of growers are awaiting prices to reach Rs 150 a kg and are therefore not releasing stock in the market at present. Leading Kochi and Kottayam-based traders said that it was very hard to get high volume of rubber even at the current price.
A leading Kottayam-based trader said that growers are having a stock of atleast 100,000 tonnes anticipating a much stronger bull phase in the market. The sharp rise since the beginning of the new year caused a 6 per cent increase in the production in January.
Around 97,500 tonnes were produced in January against 91,900 tonnes in the same month last year.
A sharp northward movement in the consumption of NR also made the commodity dearer in the recent weeks. A 24 per cent hike was recorded in domestic consumption in January at 79,500 tonnes against 64,000 tonnes in January 2009, compared to 6 per cent increase in production.
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