Spot rubber stays steady

Spot rubber stays steady


Kottayam, Nov. 26

Spot rubber continued to finish unchanged on Friday. An almost similar trend on NMCE and declines in the Japanese markets kept the sentiments almost neutral, an observer said. Sheet rubber finished flat at Rs 199.50 both at Kottayam and Kochi according to dealers and Rubber Board. The volumes were extremely narrow.

“Assuming normal weather conditions, we are estimating a rise in production in 2011,” said Mr. Jom Jacob, Senior Economist, ANRPC. “ Demand from tyre makers is rising in every country. But in the short term, we have to see what measures China is taking to curb inflation,” he added. “Weather surprised every one in the last two months and still it is not favourable for tapping. The phenomenon is unlikely to allow prices to drop from current levels,” said Mr. George Valy, President, Indian Rubber Dealers Federation.

Futures firm

In futures, the December series closed at Rs 200.55 (200.38), January at Rs 203.65 (203.33), February at Rs 205.50 (205.82) and March at Rs 208.50 (209.03) a kg for RSS 4 on National Multi Commodity Exchange (NMCE).

The volumes totalled 5796 lots and the turnover at Rs 117.67 crores. The total open interest in all series was 6301 lots.

RSS 3 weakened at its December futures to ¥354 (Rs 193.57) from ¥356.3 during the day session but then to ¥350 (Rs 191.35) a kg in the night session on the Tokyo Commodity Exchange (TOCOM). The grade (spot) slipped to Rs 200.14 (200.15) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 199.50 (199.50); RSS-5: 187.50 (187.50); ungraded: 183.50 (183.50); ISNR 20: 192.50 (192.50) and latex 60 per cent: 130 (130).