Bullish trend in rubber futures

Bullish trend in rubber futures


Kottayam, Sept 7

The domestic rubber futures were bullish on Tuesday. The September series increased to Rs 168.4 (Rs 166.49), October to Rs 164.38 (Rs 163.53), November to Rs 164.61 (Rs 163.97) and December to Rs 166.2 (Rs 165.78) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).

The volumes stood at 1,960 lots. The turnover was 32.58 crore and open interest 4,404 lots. RSS 3 declined sharply at its September futures to ¥ 302 (Rs 168.65) from ¥ 309 during the day session and to ¥ 299.5 (Rs 167.26) a kg during the night session on Tokyo Commodity Exchange (TOCOM). RSS 3 (spot) improved to Rs 163.5 (Rs 162.49) a kg at Bangkok.

Spot closed

The spot rubber market remained closed owing to the hartal announced by the political parties.

India’s synthetic rubber stocks rise

MUMBAI (Commodity Online): India’s natural latex stocks rose to 206 tons from 181 tons, while solid synthetic rubber stocks rose to 1,210 tons from 1,046 tons. Leading tyre companies in the country had witnessed its stock valuations shedding away as a result of fading investors interest due to supply crunch of rubber.

The demand supply mismatches in India led to high cost pressure on the rubber consumer industries including tyre makers. The shortage became further severe when sustained rainfall in the key rubber plantation area disrupted rubber production.

During the first three months of the current fiscal, the stock prices of leading tyre companies were seen falling with heavy losses. Apollo Tyres lost over 12.1%, while CEAT lost 13.4% during the period. Goodyear India was down 14.3% and JK Tyre lost over 18.7%. India’s largest car maker Maruti-Suzuki posted the highest ever sales in the month.

With favorable climatic conditions the outlook for rubber production in the country seems to be appreciable, which ensures the availability of raw materials for the industry.

According to data issued on Friday by the Rubber Trade Association of Japan, natural rubber stocks in Japan totaled 4,326 metric tons as of August 20, up 24% from August 10 stocks of 3,496 tons.

Japan's rubber inventories have been declining steadily during the last few months, but the country's buyers have been actively replenishing recently. The stocks hit a record low of 2,628 tons on July 20.