By Rahul Dhuri
MUMBAI – Rubber contracts on Indian Commodity Exchange ended higher today due to bargain buying after prices hit a three-week low of 14,821 rupees per 100 kg, on Monday, traders said. The most-active July contract ended at 14,940 rupees per 100 kg, up 0.5% from Monday.
However, weakness in benchmark rubber contracts on Tokyo Commodity Exchange and a fall in prices of natural rubber in key spot markets of Kerala, capped gains, said Mathew Thomas, the owner of Kerala-based Kallarakkal Agencies.
On TOCOM, in early trade, the most-active November contract hit a near four-week low of 196.0 yen (127.06 rupees) per kg, tracking crude oil contracts on New York Mercantile Exchange, analysts said.
However, the contract on the Japanese bourse ended marginally up 0.2% at 197.1 yen.
Benchmark contracts on TOCOM are likely to remain under pressure on expectations of a rise in arrivals in the coming days as tapping has commenced in Thailand, the largest grower, putting an end to the lean production season, said Anu Pai, a research analyst at Geojit Financial Services.
The decision of China, the largest consumer of natural rubber, to launch an anti-dumping probe into some rubber products also dampened the sentiment.
Back home, prices of natural rubber fell in Kerala’s key spot markets today as tapping has started in key growing areas and fresh arrivals are likely to reach markets soon, traders said.
However, demand from tyre makers cushioned the fall, said A.M. George, the owner of Kerala-based George Rubbers.
Today, in Kochi and Kottayam, the widely traded RSS-4 variety was sold at 149-151 rupees per kg, down by 1 rupees from the previous close.
While rubber price data on the Rubber Board India was unavailable trade officials said that, price of the RSS-4 variety was down by 1 rupee in Kochi and in Kottayam from the previous level.
On Monday, the RSS-4 variety was quoted at 150.50 rupees per kg, in Kochi. In Kottayam, it was sold at 151.00 rupees per kg.
Rubber contracts are likely to remain under slight pressure in the next five to six sessions on ICEX, tailing benchmark rubber contracts on TOCOM, analysts said.
Benchmark contracts on TOCOM are likely to remain under pressure on expectations of a rise in arrivals in the coming days as tapping has commenced in Thailand, the largest grower, putting an end to the lean production season, said Anu Pai, a research analyst at Geojit Financial Services. End
US$1 = 69.34 rupees
Edited by Maheswaran Parameswaran