By Rahul Dhuri
MUMBAI – Futures contracts of rubber ended higher today on the Indian Commodity Exchange, tracking gains in contracts on the Tokyo Commodity Exchange, traders said. The most-active April contract closed at 13,105 rupees per 100 kg, up 0.3% from Tuesday.
Rubber futures were up on TOCOM because of lower global crop estimate, analysts said. The most active September contract ended at 191.9 yen (119.4 rupees) per kg, up 2.3% from the previous close.
Global production of natural rubber fell more than 10% on year to 1.08 mln tn in January, while demand rose 1.3% to 1.15 mln tn, according to a report by the Association of Natural Rubber Producing Countries.
Higher crude oil price on the New York Mercantile Exchange also contributed to the rise in rubber prices. Crude oil is used to produce synthetic rubber, a substitute for natural rubber.
In Thailand, the price of RSS-3 grade rubber was up 9 cents at $176.20 per 100 kg. In Malaysia, the SMR-20 grade variety was at $153.30 per 100 kg, up $2.34 from the previous close, according to Rubber Board data.
In the domestic market, natural rubber prices were largely unchanged in spot markets of Kerala, as expectations of rise in imports negated gains due to increased demand from domestic stockists, traders said.
In Kochi and Kottayam, prices of the widely-traded RSS-4 rubber were at 128-129 rupees per kg, unchanged from Tuesday, traders said. Data from India’s Rubber Board showed that prices of the RSS-4 variety in Kottayam and Kochi remained unchanged at 128.50 rupees per kg.
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:
In the coming days, prices of natural rubber in key spot markets of Kerala are unlikely to gain much, as expectations of rise in imports is seen capping gains due to improved demand from domestic stockists, traders said. End
US$1 = 69.11 rupees
Edited by Ashish Shirke