The fall in the natural rubber prices in the international market is due to high degree of uncertainty about the European situation and its effects on economic growth. There were anxious market moves in the U.S., and is expected to see similar moves in coming days also. The euro is most likely to continue its trend deterioration until it gets really bad, forcing a resolution to come.
Most probably on Monday, Indian Stock Market may open in red and if the day continues in red then one can expect domestic NR prices moving towards north. Today, at the National Multi Commodity Exchange (NMCE), rubber future prices for October delivery closed at Rs 208.82 per kg and for November, December, January & February closed at Rs. 205.04. Rs. 206.36, Rs. 207.06 and Rs. 209 per kg, respectively.
If the above scenario happens, then there is a possibility of increase in import of natural rubber. On the other hand India’s Commerce & Industry Minister said that government may announce a relief package for exporters before Diwali. The need for the package is important as the country’s economic growth is seen moderating in the wake of turmoil in developed nations of the world.
Read lot more in Rubber4U – 15th October 2011 issue
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