India Rubber: Up on ICEX on fresh buying, supply concerns; spot unch

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By Kavita Desai

contracts on Indian Commodity Exchange ended higher today due to fresh buying by investors, and on concern over supply, said analysts.

On ICEX, the most-active December contract of rubber ended at 13,238 rupees per 100 kg, up 48 rupees from Thursday’s close.

“Currently, the market is facing a rubber shortage of around 35% and the supply crunch is likely to deepen as recent rains in Kerala, the key grower, has hindered activity,” said Thaha Mohamed, owner of Sara Traders based in Kottayam.

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Another factor seen supporting the in the domestic market is decline in imports of the commodity, traders said.

In Kerala’s Kottayam and Kochi markets, the RSS-4 variety of natural rubber remained unchanged at 131.0 rupees per kg despite weak supply.

In global markets, the May rubber futures on Tokyo Commodity Exchange ended down at 186.7 yen (around 122 rupees) a kg, down 0.2% from the previous close.

However, likelihood of global supply taking a hit could support prices going ahead. The Rubber Authority of has estimated that 64,000 ha of rubber crop has been affected in southern due to pest attack. , Indonesia, and Malaysia produce around 70% of the world’s natural rubber.

The following table shows today’s closing prices of rubber, in rupees per kg, as detailed by the , and the change in prices, in rupees, compared with the previous close:

KOTTAYAM KOCHI
GRADE CHANGE PRICE CHANGE
RSS-4 130.50 Unch 130.00 (-)0.50
RSS-5 127.50 Unch 127.50 Unch
ISNR-20 120.00 Unch NA      NA
Latex 89.30 Unch NA      NA

End

Edited by Mainak Moitra

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