By Rahul Dhuri
MUMBAI – Rubber contracts on the Indian Commodity Exchange ended higher today due to bargain buying after prices hit an over one-week low of 14,980 rupees per 100 kg on Monday, traders said.
The most-active July contract ended at 15,170 rupees per 100 kg, up 0.9% from Monday.
Expectation of a fall in rubber imports is also seen supporting the uptrend, said Biju Thomas, a rubber trader in Kerala.
Natural rubber imports are seen down 14% to 500,000 tn in 2019-20, according to the data released by the Rubber Board.
Gains in benchmark rubber contracts on the Tokyo Commodity Exchange due to expectation of a fall in global output also supported contracts on the ICEX, analysts said.
Global natural rubber production fell 5.2% on year to 2.99 mln tn in Jan-Mar, according to the Association of Natural Rubber Producing Countries.
The most-active November natural rubber contract on the Japanese bourse ended at 200.9 yen (around 129.38 rupees) per kg, up 0.4% from the previous close.
Back home, prices of natural rubber in key spot markets of Kerala fell today due to restricted demand from domestic stockists following a recent surge in prices, traders said.
Today, in Kochi and Kottayam, the widely traded RSS-4 variety was sold at 151-153 rupees per kg, down 1-2 rupees from the previous close.
However, data from the Rubber Board showed that in Kochi and Kottayam, the RSS-4 variety was quoted unchanged at 152.50 rupees per kg 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:
Rubber contracts on the ICEX are likely to trade higher in the next five to six sessions, tracking spot markets in Kerala, traders said. However, limited demand from stockists after a recent surge in prices is seen capping sharp gains, they added. End
US$1 = 69.70 rupees
Edited by Akul Nishant Akhoury