By Rahul Dhuri
MUMBAI – Rubber contracts on the Indian Commodity Exchange rose today as market participants bought at a bargain after prices hit a six-month low of 14,425 rupees per 100 kg on Friday, traders said. The most-active August contract ended at 14,505 rupees per 100 kg, up 0.5% from the pervious close.
However, a fall in benchmark rubber contracts on Tokyo Commodity Exchange and bearishness in the spot markets of Kerala capped sharp gains on ICEX, said Mathew Thomas, the owner of Kallarakkal Agencies based in Kerala.
Rubber futures were lower on TOCOM today due to a decline in contracts on the Shanghai Futures Exchange. Global growth concerns due to escalating trade tensions between the US and China also weighed on demand outlook for the commodity and dragged prices lower, analysts said.
The January contract of natural rubber on TOCOM ended nearly 1% lower at 164.6 yen (around 109.66 rupees) per kg.
In Thailand, the price of the RSS-3 variety fell $5.00 to $150.60 per 100 kg, according to Rubber Board data. In Malaysia, the price of the SMR-20 variety slipped by 65 cents to $130.85 per 100 kg.
Back home, natural rubber prices in the key markets of Kerala extended their fall today due to tepid demand from tyre makers. Expectations of rise in arrivals in the coming days also weighed on prices, said Thaha Mohamed, owner of Sara Traders based in Kottayam.
“Due to favourable weather conditions in the rubber-growing regions, fresh arrivals of rubber are likely to hit market by mid-August and gain momentum by the month-end, weighing on prices,” said Santhosh Kumar, a senior official at The United Planters’ Association of Southern India.
In Kochi and Kottayam, the widely-traded RSS-4 variety was sold at 145-148 rupees per kg, down 1 rupee from the previous day, traders said. Data from the Rubber Board showed RSS-4 variety was at 146.50 rupees per kg, down 0.50 rupee 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:
Expectations of a rise in arrivals in the coming days amid tepid demand from tyre makers is seen weighing on natural rubber prices in key markets of Kerala, traders said. End
US$1 = 70.74 rupees
Edited by Maheswaran Parameswaran