By Rahul Dhuri
MUMBAI – Futures contracts of rubber on Indian Commodity Exchange ended up today tracking gains in the benchmark contracts on Tokyo Commodity Exchange and rise in prices of rubber in spot markets of Kerala, analysts said.
On ICEX, the December contract ended at 12,265 rupees per 100 kg, up 55 rupees from Friday.
Rubber futures hit a two-month high of 168.0 yen (104.13 rupees) per kg on TOCOM today, tracking sharp gains in crude oil prices on the New York Mercantile Exchange, analysts said.
The most-active May contract on TOCOM closed higher at 164.90 yen per kg, up 2.4%.
Rubber prices rose in the international market as US-China trade talks showed signs of progress. China is the largest consumer of rubber in the world.
During the Group of 20 nations meeting with Chinese President Xi Jinping, US President Donald Trump announced that no new tariffs would be imposed on Chinese goods for 90 days and attempts will be made to negotiate a more substantial agreement between the two countries.
Gains in the global market also supported prices in key spot markets of Kerala, said Joy Alencherry, owner of Maria Rubber Links in Kottayam.
Demand for rubber in the local market, however, remains muted, but the positive sentiment in global markets has given a fillip to prices, a Kottayam-based rubber dealer said.
In Kottayam, the widely-traded RSS-4 variety was sold at 119.50-120.00 rupees per kg, up 1 rupee from Friday.
The RSS-4 variety was sold at 119.5 rupees per kg in Kochi and Kottayam, up 0.50 rupee from the previous day, data from the Rubber Board of India showed.
Today’s closing prices of rubber, in rupees per kg, at Kottayam and Kochi, as detailed by the Rubber Board, and the change in prices, in rupees, compared with the previous close are given in the following table:
The overall sentiment in the rubber market remains bearish, however gains in global market is likely to cushion sharp fall in prices, traders said. End
US$1 = 70.45 rupees
Edited by Ramya J.S. D’Rozario