By Rahul Dhuri
MUMBAI – Rubber contracts on the Indian Commodity Exchange ended lower today on expectations of a rise in imports, traders said. The most active May contract on the bourse ended at 13,114 rupees per 100 kg, down 0.2% from Friday’s close.
Lack of fresh cues from key spot markets in Kerala also weighed on contracts on ICEX, said Joy Alencherry, the owner of Kottayam-based Maria Rubber Links. Natural rubber prices were unavailable today as key spot markets in the state were shut on account of Vishu. Markets will resume trade on Tuesday, traders said.
A rise in benchmark contracts on the Tokyo Commodity Exchange, however, prevented any sharp fall in rubber contracts on ICEX, analysts said.
Rubber futures on TOCOM were trading higher due to signs of a recovery in the Chinese economy, after the release of stronger-than-expected data on Friday, analysts said. China is the largest consumer of natural rubber.
The most active September natural rubber contract on the Japanese bourse ended at 193.9 yen (around 120.12 rupees) per kg, up 0.6% from the previous close. Concerns over supply due to lower global production estimates also contributed to the upside in rubber prices. According to the Association of Natural Rubber Producing Countries, global natural rubber production fell more than 10% on year to 1.08 mln tn in January.
For further cues, investors will await a series of economic data from China, due for release this week.
Rubber contracts on ICEX are likely to remain under pressure in the coming days on expectations of a rise in imports. However, gains in benchmark contracts on TOCOM are seen preventing any sharp fall, traders said. End
US$1 = 69.42 rupees
Edited by Akshit Harsh