India Rubber: Settles up on ICEX tailing TOCOM, gains in spot market


By Rahul Dhuri

– Rubber contracts on Indian Commodity Exchange ended higher today tracking gains in the benchmark contracts on , as well as a rise in the prices of in key spot markets of Kerala, traders said.

The most-active May contract on ICEX ended at 13,138 rupees per 100 kg, up 0.2% from Monday.

Rubber contracts on TOCOM ended higher due to strong buying by market participants after a week-long holiday. The exchange was shut from Apr 29 to May 6 on account of public holidays. Gains in the benchmark contract on the Shanghai Futures Exchange also contributed to the rise.

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A fall in global output of rubber also created bullishness in the market. In Jan-Feb, global production of natural rubber fell 5.8% on year to 2.14 mln tn, according to the estimates given by the Association of Natural Rubber Producing Countries.

In Thailand, price of -3 variety was up by 17 cents at $176.50 per 100 kg. In Malaysia, the SMR-20 grade variety was sold $1.66 higher at $152.0 per 100 kg, according to data.

Back home, edged higher in Kerala today due to a fall in domestic natural rubber output amid improved demand from domestic stockists, traders said.

For 2018-19 (Apr-Mar), ’s natural fell 7.5% to 642,000 tn, while consumption edged up 9% to 1.2 mln tn, according to data released by ’s Rubber Board.

In Kochi and , the widely traded RSS-4 variety of rubber was sold at 129-130 rupees per kg today, up one rupee from Monday, traders said. Meanwhile, data from Rubber Board showed that prices of the RSS-4 variety in the two spot markets were at 130.0 rupees per kg, up 0.50 rupee 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:

RSS-4 130.00 0.50 130.00 0.50
RSS-5 128.00 1.00 128.00 1.00
ISNR-20 122.00 Unch NA      NA
Latex 88.25 0.55 NA      NA


Rubber contracts on ICEX are likely to gain in the coming five-six sessions because of a fall in India’s natural rubber output, while demand from domestic stockists have improved, traders said.  End

US$1 = 69.43 rupees

Edited by Mainak Moitra


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