Spot rubber declines further

Spot rubber declines further

Kottayam, Jan. 31:
Physical rubber prices moved down further on Monday. The market lost ground following the sharp declines in domestic futures on the National Multi Commodity Exchange. According to sources, selling from dealers kept the commodity under pressure during the day. The markets in general seemed to be moving under the grip of speculators, they said. Certain tyre companies bought RSS 4 up to Rs 225 a kg on early trades, an observer said.

Sheet rubber slid to Rs 221.50 (224.50) a kg, according to dealers. The grade moved down to Rs 223 (226) a kg, as quoted by the Rubber Board.

Futures weak

The February series for RSS 4 weakened to Rs. 217.99 (223.21), March to Rs 222.60 (228.38), April to Rs 231.36 (238.16) and May to Rs 239.25 (244.78) a kg on the NMCE.

RSS 3 (spot) improved to Rs 262.46 (261.42) a kg at Bangkok. The February futures for the grade slipped again to ¥478.7 (Rs 267.44) from ¥479.3 a kg during the day session but then remained unchanged in the night session on the Tokyo Commodity Exchange.

Spot rates were: RSS-4: 221.50 (224.50); RSS-5: 215 (216); Ungraded: 210 (213); ISNR 20: 219 (220) and latex 60 per cent: 149 (151).




Tokyo Futures Rise On Oil Gains, Capped By Firm Yen

Key Tokyo rubber futures rose on Monday (January 31) on a rise in oil prices due to concerns that tensions in Egypt might spread across the Middle East, but a stronger yen helped to cap the gains.
The benchmark rubber contract on the Tokyo Commodity Exchange for July delivery rose as much as 6.6 yen or 1.4 percent in early trade to 475.7 yen per kg, and was up 5.3 yen or 1.1 percent at 474.4 yen as of 0015 GMT.
The market fell 1.4 percent last week, posting its first weekly loss in a month. The benchmark contract hit a record peak of 484.9 yen last week.
On the Shanghai futures exchange, the most active rubber contract for May delivery rose as high as 40,945 yuan ($6,221) per tonne on Friday (January 28), just below a record peak of 41,200 yuan marked last week. The contract closed at 40,940 yuan per tonne on Friday (January 28), up from the previous close of 40,550 yuan. Volume stood at 610,376 lots.
Analysts said the market technically was looking bullish and supply concerns continued to underpin demand.
But the market also faced selling pressure as investors, wary of the recent rapid pace of price increases, may close positions in the near term, especially ahead of China's New Year holidays, when buying by the world's largest rubber consumer halts.
China begins the week-long Lunar New Year holiday on Feb. 2.
U.S. crude rose $1 to $90.34 a barrel on Monday (January 31) on concerns that unrest in Egypt could intensify and spread across the Middle East.
The U.S. dollar and the yen edged higher against the euro in early trade on Monday (January 31) as investors sought safer havens amid concerns over the simmering tensions in Egypt.
(Reuters, January 31, 2011)



NCDEX to re-launch rubber futures

MUMBAI, JAN 30:
The National Commodity and Derivatives Exchange (NCDEX) plans to re-launch rubber futures contract (Rubber RSS 4) on Monday.
Mr Vijay Kumar, Chief Business Officer, NCDEX, said the exchange is constantly striving to improve contract specifications to suit the needs of value chain participants, particularly hedgers.
The contract size will be one tonne and the price quotation will be in Rs /quintal. The tick size will be Rs 10.
DELIVERY CENTRES
The basis centre will be Kochi with additional delivery centres as Kottayam, Kozhikode, Thrissur, Manjeri and Palakkad.
Trading in a contract shall be permitted right until the day of expiry (20th of every month, unless otherwise specified).
Any depositor of rubber will receive the warehouse certificate immediately after the deposit at an NCDEX-accredited warehouse.