Natural rubber prices in Kottayam market have surged to a record high of Rs 200 per kg on Diwali, and are likely to trade at that level due to disruption of rubber production as continuous rain has been affecting the rubber production.
The surge in international prices of rubber was also fueling the domestic prices.
According to Indian Meteorological Department forecast, Kerala may get more rain in next three-four days, which in turn will increase the concerns of production shortage.
U.S. crude oil for December delivery touched a 2-year high above $87 a barrel before settling near $86.85 for the week. The commodity was up $5.42 or 6.6% in the week.
India's October industrial production data is also scheduled for next week. Any sign of increased demand for raw materials from Asia-Pacific's major growth engines will further increase the risk appetite and push up commodity prices.
In coming days, currency market reaction to developments at G-20 summit in Korea will likely guide the commodities.
Read lotmore in Rubber4U – 15th November 2010 issue
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