Spot rubber prices decline

Spot rubber prices decline

Kottayam, May 5:
The physical rubber prices declined on Thursday. The market seemed to be reacting closely to the declines in domestic futures which hit the lower circuit on the NMCE. Traders were taking advantage of a gap for speculation since the trend setting Japanese markets remain closed since last Tuesday, an analyst said.

According to observers, rubber prices had jumped to a high of Rs 240 a kg on April 20 and prices began to fall since then as farmers started clearing off their old stocks. Besides, tapping has also begun and it might continue till the month-end. The commencement of tapping in other rubber producing countries has affected global market also.

Sheet rubber surrendered to Rs 227.50 (232.50) a kg according to dealers. The grade closed weak at Rs 230 (233) a kg both at Kottayam and Kochi as quoted by the Rubber Board.

The May series nose dived to Rs 221.90 (230.52), June to Rs 227.30 (235.47), July to Rs 230 (237.61), August to Rs 227.50 (233.18), and September to Rs 225 (228.70) a kg for RSS 4 on the National Multi Commodity Exchange (NMCE).

The volumes totalled 11010 lots and open interest 7255 lots. The turnover was Rs 252.43 crores. The Tokyo Commodity Exchange (TOCOM) remained closed owing to Children's Day. Spot rates were (Rs/kg): RSS-4: 227.50 (232.50); RSS-5: 225.50 (230); ungraded: 221.50 (227.50);

ISNR 20: 220 (222) and latex 60 per cent: 141 (142).