Spot rubber prices down on correction

Spot rubber prices down on correction


Kottayam, Nov. 8

Physical rubber market entered into a corrective phase on Monday. Prices fell following sharp declines in the domestic futures and the market remained under pressure during closing hours on selling from dealers and traders.

The volumes were better compared with preceding sessions. Sheet rubber declined to Rs 200 (204) a kg after hitting an intra-day high of Rs 206 a kg during the mid session.

The grade improved to Rs 202 (200) a kg both at Kottayam and Kochi according to Rubber Board. The present situation has badly affected all segments in the rubber sector as a whole, said Mr George Waly, President, Indian Rubber Dealers Federation.

There are reports that there is a stock of 2.75 lakh tonnes of rubber in the country. But it does not reach the selling point.

Now since the tapping has resumed in plantations, there ought to be around 50,000 tonnes of rubber readily available with the growers for sale, but surprisingly enough it also does not arrive at the marketing centres. It is a very dangerous trend, he said.

In futures, the November series surrendered to Rs 200 (207.74), December to Rs 202 (209.96), January to Rs 203.17 (211.42) and February to Rs 205.50 (213.28) a kg for RSS 4 on the National Multi Commodity Exchange. The November futures for RSS 3 slipped to ¥355 (Rs 194.19) from ¥355.5 during the day session but remained inactive in the night session on the Tokyo Commodity Exchange.

The grade (spot) improved marginally to Rs 187.21 (186.56) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 200 (204); RSS-5: 193 (196); ungraded: 190 (192); ISNR 20: 196 (198) and latex 60 per cent: 130 (130).