By Kavita Desai
MUMBAI – Rubber futures on the Indian Commodity Exchange traded higher today as prices in the key spot markets of Kerala rose due to supply shortage, analysts said.
Tyre companies are willing to pay higher prices for rubber, but there are hardly any sellers. Rubber tapping is usually low during summer, said Kerala-based trader Biju Thomas.
Besides, many small growers have stopped collecting rubber as yields have dropped because of high temperatures and low prices, he said.
The June rubber contract on ICEX ended 0.12% higher at 13,618 rupees per 100 kg. In Kochi and Kottayam, the widely traded RSS-4 variety was sold in a range of 134-135 rupees per kg, up 1 rupee from Tuesday, traders said.
In global markets, natural rubber prices on the Tokyo Commodity Exchange also ended higher in line with the Japanese stock market. Japan’s Nikkei index closed at 21,188.56, up 0.6%.
However, weakness in crude oil contracts on the New York Mercantile Exchange and a firm yen against the dollar capped the upside. Rubber prices take cues from crude oil as the latter is used to produce synthetic rubber, a substitute for natural rubber.
In Thailand, price of the RSS-3 variety rose 37 cents to $175.60 per 100 kg. However, in Malaysia, the SMR-20 grade variety was down 30 cents at $149.35 per 100 kg, according to Rubber Board data.
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 the ICEX are likely to remain bullish over the next five-six sessions due to supply crunch amid robust demand from domestic stockists, the traders said. End
US$1 = 70.33 rupees
Edited by Subham Mitra