Rubber rushes to new high

Updated: Feb 1 2006, 05:30am hrs
Tuesday was the day of events in commodity markets especially for bullion and energy sector. US Federal open market committee (FOMC) meeting and oil producing and exporting countries (OPEC) meeting were the two major events that kept the traders who were involved in it busy throughout the day. Commodities like chana, urad, turmeric and pepper, which were under the continuous control of bears, got some relief on technical correction. Rubber was again the top winner of the day with prices touching Rs 80 per kg level in the spot market. Sugar continued to soar on strong buying interest. Overall advancing ones were dominating the declines ones for the day.

Market watch

It was a great day to cheer for the growers but not the consumers in which rubber prices peaked to Rs 80 per kg in the domestic spot market. Farmers of Kerala decided to stock rubber owing to the temporary shortage in production and the strong bullish trend prevailing in Thailand, the worlds largest producer of natural rubber.

In Kerala, seasonal production would come to a halt by the end of January and output would be curtailed to 25,000 tonne in a month from 65,000 tonne recorded in November-December period causing a further rise in prices, according to experts.

Cuminseed (jeera) prices lost further ground on huge stocks and good crop prospects. Market is consolidating and trading narrowly between 5900 and 6200. New crop arrival is very less in comparison to last years arrival on account of late sowing and so harvesting is delayed by around 15 days. Good arrival of around 1000 bags per day is expected from mid February. New crop data suggests higher acreage thus higher production. Rapeseed prices showed weakness on Tuesday on bumper crop prospects and increase in arrivals.

Courtesy: Geojit Commodities Ltd