By Rahul Dhuri
MUMBAI – Rubber contracts on the Indian Commodity Exchange ended lower today due to fresh selling by investors, after prices hit a two-month-high of 12,900 rupees per 100 kg on Tuesday, traders said. The November contract ended at 12,701 rupees per 100 kg, down 1.2% from the previous close.
However, gains in benchmark rubber contracts on Tokyo Commodity Exchange prevented a sharp fall on the domestic bourse, said Mathew Thomas, owner of the Kerala-based Kallarakkal Agencies.
Global supply of rubber may take a hit as outbreak of a fungal disease in Thailand has affected output. Thailand is the world’s largest producer and exporter of rubber, and accounts for up to 40% of the global supply.
Today, the most active April contract of natural rubber on the Japanese bourse ended at 178.4 yen (around 116.2 rupees) per kg, up 0.2% from the previous close.
Prices of natural rubber in the spot markets of Kerala were largely unchanged today. Arrivals were down, though sufficient to meet the demand from domestic stockists, said C.J. Augustine, owner of the Kerala-based Chettiparambil Traders.
The widely-traded RSS-4 variety was at 125-126 rupees per kg, unchanged from the previous day, traders said. Rubber Board data showed the price was 125.00 rupees per kg in Kottayam and Kochi, unchanged in both markets.
Arrivals have declined as rains in key producing areas disrupted tapping activity, said Raju Varghese, owner of Polachirayil Traders based in Kottayam.
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 = 70.98 rupees
Edited by Avishek Dutta