India Rubber: Up on ICEX on bargain buying, low import view


By Rahul Dhuri

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.

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imports are seen down 14% to 500,000 tn in 2019-20, according to the data released by the .

Gains in benchmark rubber contracts on the 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 on the Japanese bourse ended at 200.9 yen (around 129.38 rupees) per kg, up 0.4% from the previous close.

In Thailand, price of the -3 variety fell by 37 cents to $203.50 per 100 kg, according to the Rubber Board data. In , price of the SMR-20 variety fell by $2.25 cents to $152.05 per 100 kg.

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 , 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:

RSS-4 152.50 Unch 152.50 Unch
RSS-5 148.50 (-)0.50 148.50 (-) 0.50
ISNR-20 131.50 Unch NA      NA
Latex 96.15 Unch NA      NA


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


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