Tuesday, February 21, 2012

Increasing international prices keeps the momentum

Iran's announcement over the weekend that it had stopped selling crude oil to British and French companies has push crude prices higher. The Oil price at Brent has climbed to $120.11 a barrel after Tehran retaliated to Europe's latest sanctions over the country's nuclear programme.

Global natural rubber prices have been hovering around Rs 200 per kg. The Indian rubber prices are at around Rs 185 per kg and the gap between Indian and international rubber prices is widening due to a subdued domestic demand. Rubber growers are reluctant to release their holding at the current price. Tapping is expected to slow down further as summer advances. 

On 21st February, RSS4 grade closed at Rs 185.50 a kg at Kottayam and RSS3 grade increased to Rs 201.81 from Rs. 201.35 a kg at Bangkok. The February futures for the grade increased to ¥312.9 from ¥309.5 a kg and March closed at ¥315.2, April at ¥318.8, May at ¥322.2, June at ¥326 and July at ¥328.4 on the Tokyo Commodity Exchange.

Thailand’s market intervention price scheme is yet to come into effect, global rubber prices have been looking up since then.

Read lot more in the latest issue of Rubber4U

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