By Rahul Dhuri
MUMBAI – Rubber futures on Indian Commodity Exchange ended lower today, tracking the benchmark contracts on the Tokyo Commodity Exchange, traders said. The most active August contract ended at 14,710 rupees per 100 kg, down 0.7% from Friday.
Rubber futures on TOCOM traded 1% lower today on cues from rubber contracts on Shanghai Futures Exchange, analysts said. The most-active December contract of natural rubber on the Japanese bourse ended down 0.2% at 184.6 yen (around 116.80 rupees) per kg.
Fall in crude oil prices on New York Mercantile Exchange also weighed on rubber futures. Crude oil prices declined today after Iran said talks with its partners over the nuclear deal were positive, analysts said.
Rubber contracts take cues from the movement in the prices of crude oil, as the latter is used to manufacture synthetic rubber, a substitute for natural rubber.
Back home, prices of natural rubber in the key markets of Kerala were largely unchanged as gains due to the ongoing supply crunch in the market were negated by subdued demand from tyre makers, traders said.
However, the overall sentiment remains bullish because of expectations of a fall in production due to a sharp decline in yield, said a senior official at the United Planters’ Association of Southern India.
In Kochi and Kottayam, the widely-traded RSS-4 variety was sold at 149-150 rupees per kg, unchanged from the previous day, traders said. Data from the Rubber Board showed RSS-4 variety was at 150.00 rupees per kg, unchanged in both 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, a sharp rise in rubber prices are unlikely seen because tepid demand from tyre makers is seen capping gains due to an ongoing supply crunch in the market, traders said. End
US$1 = 68.73 rupees
Edited by Maheswaran Parameswaran