| Both the spot and the futures markets opened on a higher note today, with the spot prices moving up to Rs 79 a kg. According to leading dealers, the prices may touch the Rs 80 mark soon. The outbreak of sporadic diseases such as Chikungunya in major rubber-growing areas, Kottayam and Pathanamthitta, has seriously hit tapping in May and June. |
| The total production in April-June 2007 is lower by 4,515 tonnes at 164,150 tonnes compared with 168,665 tonnes in the same period last year. The provisional estimates of the Rubber Board state that the stock position as on June 30 is 145,000 tonnes, down by 15,000 tonnes as on April 30. The lower production, coupled with falling stock, has crippled the supply of natural rubber, leading to the current upswing in prices. |
| Traders had earlier estimated a slightly higher production in the first quarter of 2007-08. But the spreading of epidemics and incessant rainfall has hit production during May and June. According to the board's provisional figures in June alone, there has been a production loss of 2,610 tonnes to 55,000 tonnes compared with the year-ago period. |
| Although market sources ruled out the possibility of a serious shortage, supply will not match the demand in the current market. |
| The consumption has increased by 3,805 tonnes to touch 198,245 tonnes during April-June and this shows a production-consumption gap of 34,095 tonnes for the period. This shortage was 25,775 tonnes in the same period in 2006. |
| According to traders, there was heavy liquidation of stocks during the last couple of months as the market was in panic because of a strong bearish mode. |
| The price had touched Rs 72.50 a kg on July 4 and the market panicked over the decreasing prices. |
| But the market is in a comeback mode now and there is every possibility of a strong bull phase for the next 10 -12 weeks. The global market also favours a rally as the RSS-3 on the Tocom has improved today to Rs 83.60 a kg. |
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