Commodity Trends: Rubber recovers fast, uptrend in pepper

FE Team | Published: March 21, 2011 00:00:00 | Updated: February 01, 2018 00:00:00

NEW DELHI, Mar 20 (Commodity Online): Rubber prices rebounded on easing of demand concerns caused by Japan earthquake and closure of automobile plants and market returned back to fundamentals. Natural rubber continues to be supported by higher prices of crude oil and tight supplies in producing countries. Pepper gained this week on tight supplies but higher prices of Indian parity weakened export demand. However, export demnad would pick up if prices ease. Pepper: Pepper prices continue to be well supported on lower stocks but export orders may pick up only if prices fall so as to make it competitive to other origins. Limited supplies and lower stocks continue to provide firm support for black pepper. Availability of pepper continues to be lower in Vietnam, Brazil, India output will fall by 2000 tonnes annually to 48,000 tonnes of adverse weather conditions, according to Spices Board. India's pepper exports in April-January fell 7 per cent on year to 15,700 tonnes. Presently, India and Vietnam are the major supplies of the produce. Unseasonal rains delayed harvest affecting the yield of pepper vines and is likely slash Indian production this year, but lower stocks and lesser global output will keep prices firm. At National Commodity and Derivatives Exchange of India April contract finished up 2.89 per cent at 23454 after hitting a high of 23839. Pepper May rose from Rs 22860 to Rs 23755 after hitting a high of 23900. Pepper continues to be in bullish territory although profit booking can't be ruled out Monday. Rubber: Rubber prices have recovered from the tsunami impact and gained in the domestic market due to thin supplies. Rubber growers are holding back their produce on hopes of better prices. Tocom rubber futures are tumbled 12 per cent last week as largest-ever quake created concerns about the demand for the commodity. Several automobile majors had stopped production in Japan causing concerns about demand for tyres. Association of Natural Rubber Producing Countries (ANRPC) stated that quake hit Japan accounts for seven per cent of the global demand for natural rubber. The crisis in the automobile sector in Japan cannot have a major impact on rubber prices Meanwhile Tokyo rubber futures rebounded sharply towards weekend on supply concerns and hopes of a possible intervention by producing countries to prop up prices. Tocom Rubber surged Friday climbing as much as 7.2 per cent to 425.5 yen a kilogram ($5,210 a ton) after Thailand, Indonesia and Malaysia, the biggest growers, said they may reduce shipments.