India Rubber: Hits over 7-month high on ICEX on TOCOM, spot mkt cues

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By Rahul Dhuri 

– The May contract of rubber on Indian Commodity Exchange hit an over seven-month high of 13,644 rupees per 100 kg, up 3% from Friday, tracking gains in benchmark contracts on Commodity Exchange and a rise in prices of in key spot markets of Kerala, traders said.

Futures contracts of rubber on rose slightly in Asian trade today due to a fall in global production, analysts said. The most-active October natural rubber contract on the Japanese bourse ended at 188.8 yen (121.86 rupees) per kg, up 0.2% from the previous close.

Natural globally fell 5.8% on year to 2.14 mln tn in Jan-Feb, while demand also fell 3,000 tn to 2.17 mln tn during the same period, according to the Association of Natural Rubber Producing Countries.

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In Thailand, the price of -3 variety was up by $1.23 cents at $176.30 per 100 kg. However, in Malaysia, the SMR-20 grade variety was sold 8 cents cheaper at $149.40 per 100 kg, according to Rubber Board data.

Prices of natural rubber rose today in key markets in Kerala due to improved demand from domestic stockists amid an ongoing supply crunch in the market, traders said. Since this is a lean period for rubber production, arrivals have decreased, and buyers have stepped up purchases this month, said a latex processor based in Kottayam. 

In Kochi and Kottayam, the widely traded RSS-4 variety of rubber was sold at 130-133 rupees per kg today, up 1-2 rupees from Saturday, traders said. Meanwhile, in Kottayam and Kochi, the RSS-4 variety was traded at 133.00 rupees per kg, up 1.50 rupee from the previous day of trade, data from ’s Rubber Board showed.

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

133.00

1.50

133.00

1.50

RSS-5

130.00

0.50

130.00

0.50

ISNR-20

124.00

Unch

NA

     NA

Latex

91.40

1.05

NA

     NA

OUTLOOK

Prices of natural rubber are likely to extend gains in the key spot markets of Kerala due to robust demand from domestic stockists amid an ongoing supply crunch in the market, traders said.  End

US$1 = 70.53 rupees

Edited by Avishek Dutta

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