By Rahul Dhuri
MUMBAI – Rubber contracts on the Indian Commodity Exchange ended higher today, tracking gains in benchmark rubber contracts on Tokyo Commodity Exchange, traders said. The November contract ended at 12,850 rupees per 100 kg, up 1% from Thursday.
Benchmark rubber contracts on TOCOM rose due to concerns over supply, analysts said. Today, the most active April contract of natural rubber on the Japanese bourse ended at 178.8 yen (around 116.5 rupees) per kg, up 0.8% from the previous close.
On Wednesday, the International Tripartite Rubber Council, which represents Thailand, Indonesia and Malaysia, projected a drop of 800,000 tn in output this year. Thailand, Indonesia and Malaysia are among the top producers of natural rubber.
Production is expected to decline due to fungal disease in these Asian countries, which together produce around 70% of the world’s rubber.
Prices of the RSS-3 variety in Thailand rose 28 cents to $150.20 per 100 kg today, Rubber Board data showed. However, in Malaysia, the SMR-20 variety was sold $1.09 lower at $135.50 per 100 kg.
Prices of natural rubber at spot markets of Kerala were largely unchanged today. Though arrivals were lower, they were sufficient to meet the demand from domestic stockists, said Thaha Mohamed, owner of the Kottayam-based Sara Traders.
Arrivals have declined as rain in key producing areas has disrupted tapping activity, he said.
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 0.50 rupee higher at 126.00 rupees per kg in Kottayam and Kochi.
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:
Natural rubber contracts on ICEX are likely to extend gains due to expectations of higher demand from domestic stockists amid a fall in arrivals in the coming days, traders said. End
US$1 = 71.29 rupees
Edited by Avishek Dutta