By Rahul Dhuri
MUMBAI – The most-active April contract of rubber on the Indian Commodity Exchange today hit a seven-month high of 13,250 rupees per 100 kg, tracking gains in benchmark contracts on Tokyo Commodity Exchange and also due to a rise in rubber prices in key spot markets of Kerala, traders said.
On the ICEX, the April contract settled at 13,227 rupees per 100 kg, up 0.3% from Friday’s close.
Futures contracts of rubber on TOCOM were marginally higher today as the yen weakened against the US dollar, analysts said. A weak Japanese currency makes the yen-denominated rubber cheaper for overseas buyers.
The most-active August contract on the TOCOM settled at 194.3 yen (119.47 rupees) per kg, up 0.7% from the previous close. However, rubber prices are likely to remain under pressure as high inventory in China may continue to weigh on market sentiment, analysts said.
In Thailand, RSS-3 grade rubber was down by 3 cents at $176.50 per 100 kg. However, in Malaysia, the SMR-20 grade variety was up by $1.35 at $148.35 per 100 kg, according to data from India’s Rubber Board.
Back home, a rise in prices of natural rubber in key spot markets of Kerala also supported contracts on the ICEX. Rubber prices rose due to improved demand from domestic stockists and supply crunch in the market, said Raju Varghese, the owner of Kottayam-based Polachirayil Traders.
Today, in Kottayam and Kochi, the RSS-4 variety was quoted in the range of 127-128 rupees per kg, up 1 rupee from previous close, traders said. Data from Rubber Board showed that both in Kochi and Kottayam, the RSS-4 variety was quoted at 128.50 rupee per kg, up 0.50 rupees in both the markets.
The following table shows today’s closing prices of rubber, in rupees per kg, as detailed by the Rubber Board, and the change in prices, in rupees, compared with the previous close:
The ongoing supply crunch in the domestic market and expectation of a pick-up in demand from tyre manufacturers is seen supporting prices of natural rubber in the key spot markets of Kerala, traders said. End
US$1 = 68.52 rupees
Edited by Akul Nishant Akhoury