Rubber soars as rains hit supplies

Domestic spot rubber prices are seen rising by Rs 2-3 per kilogram in the week to Thursday on falling supplies after last week's torrential rains in the main rubber-growing state of Kerala, traders and analysts said.

The forecast of rains in the next couple of days is likely to further push prices up, they said.

"We see rubber prices at Rs 65-68 per kilogram as rains have severely hampered supplies in some important physical markets of Kerala," said Ketan Joshi, a member of the Ahmedabad-based National Multi Commodity Exchange.

Anticipating higher prices in the near-term, a handful of traders have also shelved plans to actively take part in trading as of now, he said.

These traders are likely to release stocks after next week to fetch better prices, Joshi said.

Prices are seen higher also owing to forecast of heavy rains in the southern state, close on the heels of the downpour last week, said Radhakrishnan, a rubber grower from Kerala.

Rubber tapping slows down during rains and improves immediately thereafter.

Radhakrishnan said rubber supplies would continue to be affected until the rains completely ebb. He said international prices of the commodity are ruling high""which also has a bearing on domestic prices.

Global prices shot up after rubber collection declined in the major rubber growing nations""Thailand, Indonesia and Malaysia""which account for 70 pr cent of the world's total output.