Spot rubber flares up on lack of sellers

Spot rubber flares up on lack of sellers
Kottayam: Spot rubber flared up on Wednesday. The extremely bullish sentiments were catalysed mainly by the gains in the domestic and international rubber futures amidst short supply. Sheet rubber moved up sharply to Rs 127.25 from Rs 123 a kg as covering groups remained aggressive on the grade. There were no sellers in the market even above the quoted level as the next target was projected at Rs 150 a kg for RSS 4. The transactions were in a low key.

Futures firm

The December futures for RSS 4 firmed up to Rs 128.18 (127.05), January to Rs 130.15 (129.24), February to Rs 132.20 (131.20) and March to Rs 134 (133.12) a kg on National Multi Commodity Exchange (NMCE).

RSS 3 improved with the December futures increasing to ¥244.4 (¥238.5) (Rs 129.86), January to ¥247 (¥240.3), February to ¥248.2 (¥241.4) and March to ¥250 (¥243.3) a kg during the day session on Tokyo Commodity Exchange (TOCOM). RSS 3 moved up to Rs 128.80 (126.77) a kg on Singapore Commodity Exchange (SICOM). It closed better at Rs 127.56 (126.93) a kg at Bangkok. (BL)
http://www.thehindubusinessline.com/2009/12/03/stories/2009120351761600.htm
Rubber production up 7% in November
Kochi : Setting the tone for the peak production season in India, rubber output increased by over seven per cent in November. The months of November-December-January are the peak rubber-producing season in peninsular India. However, the cumulative production for the first eight months of the current fiscal was negative, down 6.5 per cent over last year.

The increase in November contradicts the prognosis of the Association of Natural Rubber Producing Countries (ANRPC) that had predicted that production would fall, given the unseasonal nature of the rains that lashed the rubber producing regions of the country during the first week of the month. However, neither the monthly increase in production nor the smaller gap between production and consumption is expected to bring down rubber prices, Mr N. Radhakrishnan, former President of the Cochin Rubber Merchants Association said. With the global demand-supply mismatch likely to widen in the coming months, the prices are likely to rule firm.

Production for the first eight months was down to 5.38 lakh tonnes (5.76 lakh tonnes), while consumption increased 3.5 per cent to 6.15 lakh tonnes (5.94 lakh tonnes). Despite the mismatch, the stocks available in the country was up at 2.47 lakh tonnes (1.75 lakh tonnes). (BL)
http://www.thehindubusinessline.com/2009/12/03/stories/2009120351741600.htm