By Rahul Dhuri
MUMBAI – The most-active July rubber contract hit an over one-week low of 14,980 rupees per 100 kg on the Indian Commodity Exchange today as investors booked profit after a recent surge in prices, traders said. A fall in benchmark rubber contracts on the Tokyo Commodity Exchange also weighed on contracts on ICEX.
The most-active July contract settled at 15,030 rupees per 100 kg, down 2.6% from Friday. A 20-tn decline in open interest to 785 tn indicated profit booking.
Rubber futures on TOCOM ended lower today, tracking crude contracts on the New York Mercantile Exchange, analysts said. Rubber takes cues from crude as the latter is used to produce synthetic rubber, a substitute for natural rubber.
The most-active November natural rubber contract on the Japanese bourse ended at 200.5 yen (around 129.04 rupees) per kg, down 0.9% from the previous close.
In Thailand, price of the RSS-3 variety fell $1.13 to $203.85 per 100 kg, according to Rubber Board data. In Malaysia, price of the SMR-20 variety fell 50 cents to $154.30 per 100 kg.
A rise in prices of natural rubber in key spot markets of Kerala cushioned a sharp fall in rubber contracts on ICEX, said Raju Varghese, owner of Polachirayil Traders based in Kottayam.
Natural rubber prices in Kerala’s key spot markets rose today due to the ongoing supply crunch in the market amid rising domestic demand, traders said.
Expectation of a fall in imports is also seen supporting prices, Varghese added.
In Kochi and Kottayam, the widely traded RSS-4 variety was sold at 153-155 rupees per kg, up 1-2 rupees from the previous close, trader said.
However, data from the Rubber Board showed that in Kochi and Kottayam, the RSS-4 variety was quoted at 152.50 rupees per kg, down 1.00 rupee in both the markets.
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:
In the coming days, natural rubber in the key spot markets of Kerala are likely to extend gains due to robust demand from tyre makers and domestic stockists. An ongoing supply crunch in the market is also seen supporting prices, traders said. End
US$1 = 69.90 rupees
Edited by Subham Mitra