By Rahul Dhuri
MUMBAI – Rubber contracts on the Indian Commodity Exchange rose today due to bargain buying after a recent fall in prices, traders said. The most-active September contract ended at 14,100 rupees per 100 kg, up 0.3% from Friday.
Markets were shut on Monday on account of Id-ul-Zuha.
However, a fall in benchmark rubber contracts on Tokyo Commodity Exchange capped the gains on domestic bourse. Rubber contracts on TOCOM were down, tracking crude oil contracts on New York Mercantile Exchange.
Crude oil prices on NYMEX are likely to fall further due to concern over demand in view of the renewed escalation in trade tensions between the US and China.
Prices of natural rubber take cues from crude oil, as the latter is used to make synthetic rubber.
The January contract of natural rubber on the Japanese bourse ended 1.3% lower at 164.5 yen (around 111.7 rupees) per kg.
In Thailand, the price of the RSS-3 variety rose $1.75 cents to $150.80 per 100 kg, according to Rubber Board data. In Malaysia, the price of the SMR-20 variety fell by 40 cents to $132.25 per 100 kg.
Back home, prices of natural rubber remained largely unchanged in key markets of Kerala due to tepid demand and an expected fall in supply.
“Tepid demand from tyre makers and expectations of a rise in imports of the commodity weighed on prices. However, expectations of a fall in supply in the coming days is likely to cushion a sharp fall in rubber prices,” said C.J. Augustine, owner of the Kerala-based Chettiparambil Traders.
“Heavy rains have hampered rubber-tapping in key growing areas. The deluge in the state is likely to hit rubber production,” said an official at Rubber Research Institute of India.
In Kochi and Kottayam, prices of the widely-traded RSS-4 variety were largely unchanged at 145-147 rupees per kg, traders said. However, data from the Rubber Board showed the RSS-4 variety was at 146.00 rupees per kg, up 1 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:
Rubber contracts on ICEX are likely to remain under pressure in the coming five-six sessions, tracking weakness in benchmark contracts on TOCOM, analysts said. End
US$1 = 71.40 rupees
Edited by Avishek Dutta