Sheet rubber tops Rs 200 a kg-Daily report on Natural Rubber: Dec 02, 2011

Sheet rubber tops Rs 200 a kg

KOTTAYAM, DEC. 2:
Spot rubber prices continued to remain in the bullish orbit on Friday. On the spot, RSS 4 jumped to its highest since mid November tracking the overall gains on the National Multi Commodity Exchange (NMCE). According to observers, prices surged ahead mainly on covering purchases amidst low supplies as growers held their stocks even in the middle of the peak production season. Sheet rubber improved to Rs 200 (197) a kg, according to traders. The grade increased to Rs 199 (198) a kg both at Kottayam and Kochi, according to the Rubber Board.

The December series improved to Rs 203.20 (199.49), January to Rs 203.90 (200.10), February to Rs 204.65 (201.60), March to Rs 204.51 (202.25), April to Rs 207 (205.08) and May to Rs 210 (207.40) a kg on the NMCE.

RSS 3 (spot) dropped to Rs 175.63 (177.50) a kg at Bangkok. The December futures weakened to ¥259.2 (Rs 170.58) from ¥262.3 during the day session and then to ¥258.6 (Rs 170.20) a kg in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 200 (197); RSS-5: 197 (194); ungraded: 190 (188); ISNR 20: 182 (178) and latex 60 per cent: 110 (110).








Daily report on Natural Rubber: Dec 02, 2011
December 2, 2011





HIGHLIGHTS

>RSS4 in local market hits three week high

> US and Indian car sales rise in Nov.

Commentary:

RSS 4 in the Indian markets jumped to its highest since early November this year tracking gains in the international market along with lower supplies to the market in the middle of peak arrival period. RSS4 in the physical market rose to Rs.197.50 a kg, to a three week high. However in the futures market, prices were seen edging lower after opening high. The most active January contract in NMCE rubber futures shoot up to 20270, its highest since November second week, but failed to sustain the gains. In the global markets, natural rubber inched lower on Friday after rallying in the previous session. Weak Chinese manufacturing and worries over Euro Zone debt issues continued to dominate the markets, almost shrugging off a strong manufacturing data from US. Still, fall in the natural rubber prices may probably limited as unfavorable weather in the top rubber producing countries, rise in auto sales in US and India. US auto sales rose 14 per cent to a two year high while Indian car companies posted double digit growth in sales in November expect for the major Maruti Suzuki.

ANALYSTS: Anu V Pai

Source: Geojit Comtrade Limited