By Rahul Dhuri
MUMBAI – Rubber contracts on Indian Commodity Exchange ended higher today tracking gains in the benchmark contracts on Tokyo Commodity Exchange, as well as a rise in the prices of natural rubber 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.
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.
Back home, rubber prices 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), India’s natural rubber production fell 7.5% to 642,000 tn, while consumption edged up 9% to 1.2 mln tn, according to data released by India’s Rubber Board.
In Kochi and Kottayam, 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:
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