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Rubber

Sentiments are muddled in the natural rubber market. The commodity in many of the major market were up last week after the recent fall. Japan Osaka rubber futures posted gains for the week bouncing off from its weakest level since April 2020. SHFE Jan rubber futures too bounced off from the lows in the holiday shortened week. China markets are closed for a National Day holidays from Oct 1 to Oct 7. Rise in crude oil prices and expectations of economic stimuli amidst forecast of higher demand for natural rubber propped the prices. Yet, worries over economic growth momentum, persisting corona virus issues, concerns over demand from the auto sector etc weighed on, keeping gains under check. Also, main production phase is set to begin in many of the major natural rubber producing countries. In the Indian market, in the meantime, RSS4 grade rubber steadied near two-month lows.

Kottakkal Arya Vaidya Sala has entered into an agreement with the Rubber Board to help rubber farmers cultivate medicinal plants as intercrops. Arya Vaidya Sala will help farmers cultivate 13 medicinal plants in their plantations, especially during the first seven years after planting the rubber. Rubber Board and Arya Vaidya Sala officials said here that cultivating medicinal plants as an intercrop in the initial years of rubber planting would help the farmers tide over their lean years. Herbal cultivation can be continued until the farmers start tapping their rubber trees.

According to the Association of Natural Rubber Producing Countries (ANRPC)'s August release, the outlook for world demand on natural rubber (NR) is estimated to grow by 9.3%, on a year-to-year basis, to 14.100 million tonnes in 2021. The revised outlook is attributed to a better anticipated demand from China, India, Thailand and Viet Nam during the year. While the world production revised to 13.860 million tonnes with 2.0% growth as compared to the previous year. Apart from the market fundamental in NR, physical rubber prices were also influenced by other external factors such as development in oil sector, inventories in regional futures markets, strength of exporting NR countries and any other regional political developments.

The Northeast Frontier Railway (NFR) has commenced the transportation of rubber sheets and products as a new stream of goods traffic from Tripura to various destinations. Eventually, substantial production of rubber sheets takes place in Tripura. According to reports, more than 90,000 tonnes of rubber is produced annually in Tripura, having about 87000 hectares of rubber plantation. Tripura exported more than 53000 tonnes of rubber during the financial year 2020-21 to places like Jalandhar, Ludhiana and Delhi.

In a major initiative to prepare a comprehensive database on natural rubber sector, right from the total areas of cultivation to the details of rubber tappers, Rubber Board is conducting the first ever nationwide census. The census to be conducted by using a mobile application will begin with the data collection in Kottayam soon.

With a view to minimising the impact of landslips on the natural rubber plantations, the Rubber Board is all set to unveil a Web portal classifying the rubber plantations across the State based on their susceptibility to landslips. The classification, according to officials, will help the agency recommend adoption of suitable agricultural practices and cultural operations to each plantation, based on its vulnerability.

Cambodia exported $99.87 million of natural rubber from January to April this year, according to the country’s Ministry of Agriculture, Forestry and Fisheries. In total, 61,056 tonnes of natural rubber were exported over the four months. Rubber export revenues increased by 2.5 percent over the same period in 2020 ($97.43 million) according to the ministry.

OUTLOOK

A range bound move inside 17400-16800 ranges expected and a break out from either the sides could lend fresh directions.

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