Spot rubber turns weak on global cues

Spot rubber turns weak on global cues
Aravindan

Kottayam, June 29

Spot rubber prices turned weak on Tuesday. In the spot market, the prices slipped following declines in the domestic and international futures. Sheet rubber moved down to Rs 179.25 from Rs 180 a kg mainly on profit booking at higher levels. The volumes were comparatively better.

There is a close link between the prices of oil and rubber. When the oil price surges ahead in the international market it is natural that upswings are visible in rubber prices also. Therefore the price hike in rubber cannot be interpreted as abnormal or too much in the present context, Advocate Mr Joy Nadukkara, Ex MP and President, Meenachil Rubber Marketing and Processing Cooperative Society Ltd told Business Line.

Futures decline

In futures, the July series weakened to Rs 178.30 (180.75), August to Rs 172.10 (173.73), September to Rs 165.21 (166.69) and October to Rs 161 (162.63) a kg for RSS 4 on the National Multi Commodity Exchange. On the Tokyo Commodity Exchange, the July futures declined sharply to ¥348.4\Rs 182.52 (¥367.1), August to ¥321.8 (¥340.2), September to ¥305.6 (¥321.3), October to ¥286.3 (¥300.2), November to ¥277.7 (¥289.5) and December to ¥274.4 (¥283.8) a kg for RSS 3 during the day session. RSS 3 (spot) weakened to Rs 168.76 (170.95) a kg at Bangkok.

Spot prices were (Rs/kg): RSS-4: 179.25 (180); RSS-5: 177 (178); ungraded: 174 (176); ISNR 20: 157 (158) and latex 60 per cent: 127 (127).