Commodity Online
KOCHI: Following a slump in domestic prices and a rise in global rates, natural rubber exports moved up this year and the prices in the domestic market may see upward trend next week.

According to rubber traders and growers, overseas sale of natural rubber rose on low domestic prices, which are Rs 15 a kg less than global prices.

Following this, sellers are likely to hold back stocks expecting further rise in exports.

Rubber exports, which was almost nil till recently, gained momentum in December-January due to firming up in international markets compared with domestic rates.

Rubber Board has also upped export projections to 35,000 tonne in 2007-08 (April-March) from earlier estimate of 24,000 tonnes.

According to current indications, exports are likely reach 45,000-50,000 tonnes by end of March.

However, dealers said prices in the spot market are unlikely to show any sharp uptrend due to high level of carryover stocks.

Carryover stocks of 225,000 tonnes as on January 31 will keep supply at comfortable levels despite rise in exports, dealers said. Rise in exports has failed to make a major impact on domestic price so far due to high level of stocks.

Intermittent rains in Kerala, accounting for around 90 per cent natural rubber output in the country, will also keep production at high levels in February considered as the beginning of lean season for rubber output.

According to present indications, benchmark RSS-4 grade may stay at Rs 95-97 a kg.

NMCE rubber Futures made modest gains as March contract rose to Rs 9,750 a quintal on Wednesday from to Rs 9,672 last week.

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