India Rubber: Ends higher on ICEX tailing benchmark TOCOM contracts

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By Rahul Dhuri

MUMBAI – Rubber contracts on Indian Commodity Exchange ended higher today tracking benchmark contracts on 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 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 , analysts said.

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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 -3 grade rubber was down 50 cents at $175.40 per 100 kg. However, in , the -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 negated gains due to ongoing supply crunch in the market, said Joy Alencherry, the owner of -based Maria Rubber Links.

There is a supply crunch in the market as rubber 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:

KOTTAYAM KOCHI
GRADE PRICE CHANGE PRICE CHANGE
RSS-4 128.00 Unch 128.00 Unch
RSS-5 125.00 Unch 125.00 Unch
ISNR-20 122.00 Unch NA      NA
Latex 87.70 (-)0.55 NA      NA

OUTLOOK

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

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