By Rahul Dhuri
MUMBAI – The most-active May futures contract of rubber today touched a one-month low of 13,117 rupees per 100 kg on the Indian Commodity Exchange, on expectations of rise in rubber imports and as demand from tyre manufacturers was tepid, traders said.
The contract ended at 13,130 rupees per 100 kg, down 0.7% from Thursday.
Rise in spot prices in Kerala and benchmark contracts on Tokyo Commodity Exchange prevented a further fall in the contracts on ICEX, said Mathew Thomas, owner of Kochi-based Kallarakkal Agencies.
In the key spot markets of Kerala, natural rubber prices were up due to a supply crunch and rise in demand from domestic stockists, traders said.
There is a supply crunch as tapping has been stopped in the key growing areas of Kerala from mid-March and will remain suspended till the end of Mayend, said Raju Varghese, owner of Kottayam-based Polachirayil Traders.
In Kochi and Kottayam, the widely-traded RSS-4 variety was sold at 128-129 rupees per kg, up 1 rupee from the previous day. However, 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.
On TOCOM, rubber futures were up tracking rise in crude oil prices on the New York Mercantile Exchange. Concerns over supply due to lower production estimate further contributed to the upside in prices, analysts said.
The most active September natural rubber contract on the Japanese bourse ended at 193.8 yen (around 119.68 rupees) per kg, up 0.8% from the previous close.
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, a sharp rise in prices of natural rubber in the key spot markets of Kerala is unlikely as tepid demand from tyre manufacturers is seen negating gains from the supply crunch and rise in benchmark contracts on TOCOM, traders said. End
US$1 = 69.15 rupees
Edited by Ashish Shirke