India Rubber: Nears 8-month high on ICEX tracking spot market gains

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By Rahul Dhuri

MUMBAI – The most active contract of rubber on the Indian Commodity Exchange neared an eight-month high of 14,054 rupees per 100 kg, tracking gains in key spot markets of Kerala, traders said. The contract ended at 13,977 rupees per 100 kg today, up 1.2% from the previous close.

Rubber prices in spot markets of Kerala remained firm today amid a supply crunch. Most traders are selling old rubber stocks, as there are hardly any new arrivals, a Kottayam-based rubber dealer said.

Rubber tapping is usually low during the summer and supply tightness is likely to continue for at least a month, traders said.

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In Kochi and Kottayam, the widely traded -4 variety of rubber was today sold at 135-137 rupees per kg, up 2-3 rupees, traders said. Rubber Board data showed the -4 variety was traded at 138.00 rupees per kg, up 1 rupee, in both the markets.

In the global arena, rubber contracts on the Tokyo Commodity Exchange ended flat as profit booking by market participants negated early gains on the back of a rise in contracts on the .

Rubber prices take cues from crude oil as the latter is used to manufacture synthetic rubber, a substitute for natural rubber.

Investors booked profits after prices on hit a one-month high of 195.5 yen (124.01 rupees) per kg on Friday, analysts said. The most active October natural rubber contract on the Japanese bourse ended at 190.5 yen per kg, unchanged 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:

KOTTAYAM KOCHI
GRADE PRICE CHANGE PRICE CHANGE
RSS-4 138.00 1.00 138.00 1.00
RSS-5 135.00 1.00 135.00 1.00
ISNR-20 126.00 1.00 NA      NA
Latex 93.50 0.50 NA      NA

OUTLOOK

In the coming days, prices of natural rubber in key markets of Kerala are likely to extend gains due to the ongoing supply crunch amid robust demand from stockists, traders said.  End

US$1 = 69.74 rupees

Edited by Akshit Harsh

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