Rubber-producing countries looking forward to China’s return
Market Review 11.12.2022
Kochi: The return of Chinese industrialists to the international rubber market will give a new lease of life to the rubber production sector in Asia, while the Indian tyre industry has once again shocked the rubber farmers. Only paper could be used to store copra in Kerala, so the government has switched to buying green coconuts.
After a long wait, rubber finally broke the resistance at 220 yen per kg on the Japan exchange. The market has been trying to break this critical resistance for four weeks. Last day, the rubber price rose to 230 yen, continuing the bull rally that began at 209 yen and maintained support at 208 yen during the mid-November collapse. Trying to break the resistance at 235-240 yen. At the same time, the US Fed Reserve rate decisions starting tomorrow and movements in global crude oil prices are critical for Asian rubber.
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After the crisis created by Covid-19, China is making strong preparations to return to its former glory in the new year. It can be assumed that they will fire the first shot of industrialization during the March-June period. Along with the Chinese automobile sector, the Chinese tyre production sector can make a huge leap in 2023. Rubber excels not only in China but also in Japan and Singapore. If the initial resistance at 238 yen is overcome, the market may look towards last year’s price of 338 yen in the new year.
Farmers in Kerala are trying to increase rubber production. At the same time, the tire lobby is making every effort to dampen the confidence of farmers. Buyers who stormed the domestic market when foreign rubber prices fell last week, pretending not to notice the rise in international prices, pushed fourth-grade sheet prices down from ₹145 to ₹142 per kg. Fifth grade also traded at ₹139.
The agriculture industry is waiting for the Kerala Agriculture Department to say that it will make it easier to buy green coconuts. After eight months of copra stockpiling at the expense of lakhs, the market price did not rise even by a single rupee and the stockpiling could not stop the price from collapsing.
The new plans to go to agricultural areas and buy green coconuts will be put into action in January. A look at the past activities of the procurement agencies clearly shows the depth of sincerity towards the farmers. Even after the stocking in copra reached green coconut, the price collapse in the agricultural sector continued.
Copra could not find enough energy to break the resistance at 9400. Copra prices have been steady at ₹9,000 for two weeks. The regional demand for coconut oil did not rise, which was a setback for the small millers. The Coconut oil price in Kochi is ₹13,600.
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Despite competition from domestic and foreign buyers to buy cardamom, the price did not rise. Cardamom’s slump continues as each day goes by in the hope that rates will rise today and rise tomorrow. Harvesting is slow in many parts. At the same time, the goods are available for sale in high volume. There are inquiries from various foreign countries. The average price of cardamom is ₹878 per kg.
Technical correction in the black pepper market. Pepper prices, which advanced for two weeks, weakened again. The backlash happened when buyers from other states pulled back and the import lobby moved quickly to get rid of their stocks. In Kochi, ungarbled pepper fell by ₹500 to ₹49,000 per quintal. The price of Indian pepper in the international market is 6500 dollars per ton.