By Rahul Dhuri
MUMBAI – The most-active June contract of rubber hit an eight-month high of 14,999 rupees per 100 kg on the Indian Commodity Exchange, tracking early gains in benchmark contracts on the Tokyo Commodity Exchange, traders said.
The contract ended at 14,923 rupees, up 2.2% from Tuesday. Markets were shut on Wednesday on account of Id-ul-Fitr.
Rubber futures on TOCOM rose today due to a fall in global output, and in line with crude contracts on the New York Mercantile Exchange, analysts said. Rubber prices take cues from those of crude as the latter is used to produce synthetic rubber, a substitute for natural rubber.
In Jan-Mar, global natural rubber production fell 5.2% on year to 2.99 mln tn, according to the Association of Natural Rubber Producing Countries.
The most-active November natural rubber contract on the Japanese bourse ended 0.7% lower at 200.6 yen (around 128.39 rupees) per kg.
In Thailand, price of the RSS-3 variety rose $4.9 to $195.20 per 100 kg, according to Rubber Board data.
Back home, a fall in natural rubber prices in key spot markets of Kerala capped sharp gains in contracts on ICEX, said Joy Alencherry, owner of Kottayam-based Maria Rubber Links.
Prices of natural rubber in key spot markets of Kerala fell on expectation of a rise in India’s natural rubber production, traders said.
Natural rubber output in the country is seen rising 15.7% on year to 750,000 tn in 2019-20 (Apr-Mar), Rubber Board Chairman and Executive Director K.N. Raghavan said.
Today, in Kochi and Kottayam, the widely traded RSS-4 variety of rubber was sold at 142-144 rupees per kg, down 1-2 rupees from Tuesday, traders said.
Rubber Board data showed that the RSS-4 variety was sold at 144.50 rupees per kg in Kochi and Kottayam, up 1 rupee and 0.50 rupee, respectively.
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 extend gains in the coming sessions due to robust demand from domestic stockists. However, expectation of a rise in India’s natural rubber production is seen capping sharp gains, analysts said. End
US$1 = 69.26 rupees
Edited by Subham Mitra