Spot rubber zooms to Rs 235 a kg

Spot rubber zooms to Rs 235 a kg

Kottayam, Jan. 21
Spot rubber changed hands at another record price on Friday. The market seemed to be following sharp gains on the Tokyo Commodity Exchange (TOCOM) and Bangkok, ignoring the marginal declines in domestic futures on the National Multi Commodity Exchange (NMCE). There were no quantity sellers or profit booking at higher levels even during closing hours and the prices ruled firm on fresh buying and short covering.
Among other reports, the key Tokyo and Shanghai rubber futures hit all-time highs as a weak yen against dollar triggered speculative buying while further gains were expected due to strong demand and short supplies.
Sheet rubber flared up to Rs 235 (229.50) a kg, according to dealers. The grade increased to Rs 234 (230) a kg as quoted by the Rubber Board.
FUTURES WEAKEN
RSS 4 weakened with February series slipping to Rs 238.02 (238.69), March to Rs 243.80 (244.81), April to Rs 252 (253.68) and May to Rs 258.32 (259.90) a kg for on the NMCE.
The January futures for RSS 3 improved to ¥476.8 (Rs 262.93) from ¥464.1 a kg during the day session but then slipped to ¥476 (Rs 262.49) in the night session on the TOCOM. The grade (spot) closed firm at Rs 261.87 (257.73) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 235 (229.50); RSS-5: 225 (223); ungraded: 220 (215); ISNR 20: 226 (224) and latex 60 per cent: 155 (155).



Tokyo, shanghai rubber futures hit records

Tokyo (january 22, 2011) : key tokyo and shanghai rubber futures hit record highs on friday as speculators continued to bet on further market upside due to strong demand and supply tightness. the key tokyo commodity exchange rubber contract for june delivery settled at 477.6 yen, up 11.9 yen or 2.6 percent, after scaling a record high of 478.1 yen per kg.
the market posted a weekly gain of about 4 percent, easing slightly from the previous week's 5.3 percent rise. japanese traders have said tocom futures could even hit 500 yen in the next month as the wintering season begins in producing countries and reduces output. the most active shanghai rubber futures contract for may delivery closed at 40,650 yuan ($6,173) per tonne, up from thursday's close of 40,130 yuan. the contract hit a record high of 40,985 yuan per tonne earlier on friday.



Natural rubber hits record high of Rs 235 a kg on global cues.

NEW DELHI: Prices of natural rubber in the domestic market touched a record high of Rs 235 per kg today, tracking global rates which hit a new high on supply concerns emanating from biggest producer Thailand.
Prices of natural rubber, a key component for making tyres, today closed at Rs 234 per kg in Kottayam and Kochi, which account for 90 per cent of the country's production.
The price of the commodity also shot up to a record high of Rs 261 per kg in Bangkok on concerns that supply from Thailand, the top exporter of the material, may decline, worsening a supply shortage after a flood warning in the nation.
"International prices are at a record high and are likely to remain at that level in the near future due to strong demand," said the Indian Rubber Dealers Federation .
Domestic prices are following the international trend, it added.
A surge in demand from the US on the back of better-than -expected growth in the automotive segment and a strong demand from China is pushing the global prices of the commodity and the impact is also felt on the domestic market, traders said.
Natural rubber prices have been on the rise for the past few months due to disruption of production in Kerala, which accounts for 90 per cent of the country's production, coupled with a rally in international prices of the commodity.
However, the present rally in the prices of commodity is due to global cues, Jalal said, adding that there is no supply crunch in the country.
India's production of natural rubber in 2010 is estimated at around 8.5 lakh tonnes, whereas the total demand for natural rubber in the country is nearly 10 lakh tonnes per annum.



Rubber mart set to stay bullish

Rubber prices are expected to continue to scale new highs next week, says a dealer.
The dealer said solid demand and a tight supply due to the rainy season would continue to keep the market bullish.
"We will see the bad weather pushing prices while the high crude oil price will also boost the market," a dealer said.
He said the wintering season is expected to continue until April.
On a Friday-to-Friday basis, the Malaysian Rubber Board's official physical seller price for tyre-grade SMR 20 surged 53 sen to 1,646 sen per kg from 1,593 sen last week.
Latex in bulk rose 24 one sen to 1,028.5 sen per kg from 1,004.5 sen previously.
The unofficial seller closing price for tyre-grade SMR 20 rose 56.5 sen to hit 1,656.5 sen per kg from 1,600 sen last week, while latex in bulk increased 22.5 sen to 1,030.5 sen per kg from 1,008 sen previously.