Spot rubber hits Rs 190/kg, retreats

Spot rubber hits Rs 190/kg, retreats
Aravindan

Kottayam, Aug 5

Spot rubber prices witnessed a mixed on Thursday. Sheet rubber improved to Rs 189 from Rs 188 a kg after hitting an intra-day high of Rs 190 a kg on late trades. The Board's rate for the grade was quoted at Rs 186 (185) a kg. There was no quantity sellers in the market and supply concerns continued to put pressure on the buyers though they kept a low profile. Most of the grades remained unchanged amidst comparatively weak volumes.

The domestic rubber futures were in a corrective phase on the National Multi Commodity Exchange The near-month August touched a high of Rs 191.98 and a low of Rs 189.5 during the day. In the global market, the key Tokyo rubber futures contract hit a five-week high as investors welcomed yen's drop from an eight-month high against dollar but gains were restricted as oil prices retreated later.

Futures decline

RSS 4 declined with the August series slipping to Rs 190 (191.61), September to Rs 175.55 (179.14), October to Rs 166.2 (169.38) and November to Rs 164.18 (166.2) a kg on the NMCE. RSS 3 increased with August futures rising to ¥317.5/Rs 170.22 (¥314.5) during the day session but weakened to ¥315.6 (Rs 169.18) a kg during the night session on the Tokyo Commodity Exchange. The grade (spot) closed at Rs 150.85 (Rs.150.29) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 189 (188); RSS-5: 180 (180); ungraded: 170 (170); ISNR 20: 159 (159) and latex 60 per cent: 107 (107).



Switch to rubber sheet processing: Sajan Peter
KOTTAYAM, INDIA (Commodity Online): Rubber growers, who are selling their produce as latex, should switch to sheet processing, considering the lower price now being realised by latex, suggested Mr. Sajen Peter, Chairman, Rubber Board.

He said that the current domestic price of sheet rubber is ruling above the international price, by a margin of nearly forty rupees. Such huge price differential is unrealistic and so not sustainable. But the latex price in the domestic market at present is moving in tandem with the international price. Prices ruling much above the world market would not be beneficial for the growers themselves in the long run, he pointed out.

He demanded that Rubber Producers’ Societies and Community Processing Centres divert maximum quantity of their latex for sheet making. All processing centres which presently process their produce as sheet should aim at full capacity utilisation.
He reminded the growers that the Board had issued similar instructions in August 2008, when a similar situation prevailed.