Next target is projected as Rs 160 a kg for sheet rubber.

Spot rubber prices improve

Kottayam, March 17

Physical rubber prices improved on Thursday. Creating yet another landmark in history, sheet rubber closed at Rs 150 (149) a kg on fresh buying and short covering.

The grade opened better and hit an intraday high of Rs 151 a kg during the morning session.

But late declines in TOCOM took the steam out the market and it lost the initial gains partially on buyer resistance.

The undercurrent was bullish and the next target is projected as Rs 160 a kg for sheet rubber.

Futures gain

The April futures for RSS 4 closed at Rs 154.15 (153.61), May at Rs 156.10 (156.29), June at Rs 158.15 (158.16) and July at Rs 158.26 (158.90) a kg on National Multi Commodity Exchange (NMCE).

The March futures for RSS 3 improved to ¥304.5 (¥301.5) (Rs 152.64), April to ¥303.5 (¥296.6), May to ¥299 (¥291), June to ¥295.1 (¥288.7), July to ¥291.1 (¥284.9) and August to ¥288.6 (¥282.8) a kg during the day session on Tokyo Commodity Exchange (TOCOM).

The grade weakened at its March futures to ¥301.9 (Rs 151.34), April to ¥301, May to ¥297.2, June to ¥293.4, July to ¥289.1 and August at ¥287.1 a kg during the night session. RSS 3 firmed up to Rs 148.20 (147.64) a kg on Singapore Commodity Exchange (SICOM).

The grade closed at Rs 149.51 (148.55) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 150 (149); RSS-5: 149 (147); ungraded: 147.50 (146); ISNR 20: 147.50 (146.50) and latex 60 per cent: 98 (97)

Summer showers kindle plantation sector hopes

Awaiting more:A file photo of a rubber plantation.

C.J. Punnathara

Kochi, March 17

Scattered summer showers, which lashed several parts of South-West India, have brought respite from the searing heat, and revived hopes of better harvests to the plantation sector.

“Some estates in the high ranges have received good summer showers and the temperatures have eased. However, more such showers are required to ensure bounteous new flush of leaves and a better crop in the summer months ahead,” tea planters from Munnar in Kerala said.

Tea plantations

The tea planters, who enjoyed a good crop and steady prices last year, are keeping their fingers crossed awaiting more such showers which were scattered to become increasingly widespread and recurrent over the coming days.

Rubber output

While the scanty summer showers by themselves are not expected to spurt rubber production, the onset itself can be an indicator of more rains to follow, which augurs well for the rubber industry, Mr N. Radhakrishnan, former President of the Cochin Rubber Merchants Association, said.

The scanty and scattered showers reported so far are not sufficient to increase soil humidity and enhance production. But more widespread and better showers over rubber growing belts would increase soil humidity, accelerate re-foliage of the trees which have shed their leaves during the winter season and enhance tapping in the months to come, Mr Radhakrishnan added.

Although scattered, summer showers were reported from major rubber growing areas of Kottayam, they were not reported from the neighbouring district of Idukki, which is part of the cocoa-growing belt.

Promising for cocoa

“The onset of the summer showers holds promise for the coming peak cocoa season. As the temperatures have begun to ease from last week's highs, the wilting of some of the small cocoa pods have been arrested and prospects of a good crop have begun to emerge,” Mr Venkatesh N. Hubbali, Director, Directorate of Cashew and Cocoa Development said.

Although cocoa plants flower and seed throughout the year, good summer showers are mandatory for a good crop during the peak season of May-September.

Although new acreage under cocoa coming up in Tamil Nadu and Andhra Pradesh are on irrigated lands, Mr Hubbali said that traditional areas in Kerala are in rain-fed areas and require good summer and monsoon showers for a bounteous crop.

Rain impact

Although the onset of summer showers augurs well for the cocoa crop, it is still too early to predict the impact of the crop given the scattered nature of the rains, sources in cocoa trade said. More widespread and good summer showers would result in greater flowering, seeding and better pods, auguring a good cocoa crop.

Summer showers should not just bring a respite from the heat but should enhance soil humidity, cardamom cultivators from the high ranges said.

Cardamom

Respite from intense heat and humid conditions are essential for the plants which require fair amount of shade, both of which were not available from the first round of summer showers.

More of such rains could be a promise to a better cardamom harvest this year, they added.