By Rahul Dhuri
MUMBAI – Rubber contracts on Indian Commodity Exchange ended higher today tracking benchmark contracts on Tokyo Commodity Exchange, traders said. The most-active May contract on ICEX ended at 13,024 rupees per 100 kg, up 0.3% from Wednesday.
Rubber contracts on TOCOM rose due to a fall in output of natural rubber, analysts said. Global output of natural rubber fell 5.8% on year to 2.14 mln tn Jan-Feb, while demand fell by 3,000 tn to 2.17 mln tn during the same period, according to a report by the Association of Natural Rubber Producing Countries.
The most-active October contract on TOCOM ended 0.3% higher at 191.5 yen (120.23 rupees) per kg tracking contracts on Shanghai Futures Exchange, analysts said.
However, a rise in rubber inventories at Shanghai-accredited warehouses capped gains on TOCOM. As of Wednesday, stock of rubber at Shanghai warehouses was at 123,170 tn compared with 122,870 tn on Tuesday.
In Thailand, the price of RSS-3 grade rubber was down 50 cents at $175.40 per 100 kg. However, in Malaysia, the SMR-20 grade variety was quoted 11 cents higher at $151.80 per 100 kg, according to Rubber Board data.
Back home, prices of natural rubber in key spot markets of Kerala were largely unchanged today as subdued demand from tyre manufacturers negated gains due to ongoing supply crunch in the market, said Joy Alencherry, the owner of Kottayam-based Maria Rubber Links.
There is a supply crunch in the market as rubber tapping in key growing areas of Kerala has come to a halt since mid-March, which will continue till May-end, traders said.
In Kochi and Kottayam, the widely traded RSS-4 variety of rubber was unchanged at 127-128 rupees per kg. Meanwhile, data from Rubber Board showed that prices of the RSS-4 variety in the two spot markets were largely unchanged at 128.0 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 sessions, gains in benchmark rubber contracts on TOCOM is seen supporting contracts on ICEX. However, prices of natural rubber in key spot markets of Kerala are likely to remain in thin range, traders said. End
US$1 = 70.25 rupees
Edited by Mainak Moitra