By Rahul Dhuri
MUMBAI – Rubber contracts fell sharply on the Indian Commodity Exchange because of weakness in spot markets of Kerala, traders said. The most-active October contract ended at 12,500 rupees per 100 kg, down 1.6% from Wednesday.
Prices of RSS-4 variety of natural rubber fell 2-3 rupees to 128-130 rupees per kg in Kerala’s key markets, trader said, on the expectation of higher production this season.
However, Rubber Board data showed that in Kottayam and Kochi, the RSS-4 variety was sold at 130.00 rupees per kg, down 1 rupee from the previous level.
Persistent fall in demand from domestic stockists and tyre makers also weighed on prices, said C.J. Augustine, owner of Kerala-based Chettiparambil Traders.
A fall in benchmark rubber contracts on Tokyo Commodity Exchange further pressured contracts on domestic bourse, analysts said. The February contract of natural rubber on TOCOM ended down 1.7% at 166.8 yen (around 110.1 rupees) per kg.
In Thailand, prices of the RSS-3 variety fell by $1.00 to $152.30 per 100 kg, according to Rubber Board data. In Malaysia, price of the SMR-20 variety fell 35 cents to $134.85 per 100 kg.
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:
Expectation of higher production of natural rubber and sluggish demand from domestic stockists and tyre makers is likely to keep rubber prices under pressure in key markets of Kerala, traders said.
The country’s rubber output in 2019-20 (Apr-Mar) is seen at 750,000 tn, against 651,000 tn in the previous year, the head of Karvy Comtrade said. End
US$1 = 71.31 rupees
Edited by Shirsha Thakur