By Rahul Dhuri
MUMBAI – Rubber contracts rose on the Indian Commodity Exchange today due to bargain buying after prices hit an 11-month low of 11,990 rupees per 100 kg on Friday, traders said. The most active October contract ended at 12,229 rupees per 100 kg, up 0.7% from the previous close.
A rise in benchmark rubber contracts on the Tokyo Commodity Exchange also supported gains on the domestic bourse, said Mathew Thomas, the owner of Kerala-based Kallarakkal Agencies.
Natural rubber contracts traded marginally higher on the TOCOM today as investors covered their short positions after an 11-month low hit last week, said analysts. The March contract ended at 156.3 yen (around 103.8 rupees) per kg, up 0.3% from Friday.
Prices of the RSS-3 variety fell by 12 cents to $141.30 per 100 kg in Thailand, Rubber Board data showed. The price of the SMR-20 variety rose 65 cents to $125.90 per 100 kg in Malaysia.
Back home, a sharp fall in prices of natural rubber in key markets of Kerala capped sharp gains on the domestic bourse, said Biju Thomas, a rubber trader based in Kerala.
Prices of natural rubber in the key market of Kerala hit a 10-month low due to sluggish demand from tyremakers and domestic stockists, traders said.
The widely-traded RSS-4 variety was sold at 118-119 rupees per kg, down 1-2 rupee from the previous close, traders said. Rubber Board data showed it was sold at 120.00 rupees per kg in Kottayam and Kochi, unchanged from the previous day.
Rise in imports also weighed on the prices. India’s natural rubber imports in August were at 57,821 tn, up 13.5% on month, according to Directorate General of Commercial Intelligence and Statistics data. The country has imported 275,127 tn in Jan-Aug.
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:
US$1 = 71.02 rupees
Edited by Akul Nishant Akhoury