By Kavita Desai
MUMBAI – Natural rubber contracts on the Indian Commodity Exchange ended lower today, tracking spot markets, where expectations of higher domestic supply weighed on prices, analysts said.
“Tapping activity has commenced in the major rubber-growing regions and supply is likely to gather pace in coming weeks,” said Palakkad-based trader Sudhakaran K.
On the ICEX, the most-active August contract ended at 14,390 rupees per 100 kg, down 60 rupees from Tuesday. The widely traded RSS-4 variety was steady at 148-150 rupees per kg in the spot markets of Kochi and Kottayam, down 1 rupees from the previous day.
Rubber futures on the Tokyo Commodity Exchange also ended lower, with the most-active December contract down 0.3% at 176.7 yen per kg. The fall was limited due to a weak yen against the dollar and firm crude oil prices on NYMEX. Oil prices on NYMEX were 1% higher today after the American Petroleum Institute on Tuesday reported a steeper-than-expected fall in US stockpiles.
Prices of rubber take cues from those of crude oil as the latter is used to manufacture synthetic rubber, a substitute for natural rubber.
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 with a positive bias, tracking gains in spot markets, where expectation of low arrivals due to poor yields are likely to support prices, traders said. End
US$1 = 68.5650 rupees
Edited by Avishek Dutta