By Rahul Dhuri
MUMBAI – The most active February contract of rubber hit a four-month high of 14,380 rupees per 100 kg on the Indian Commodity Exchange, tracking gains in spot markets of Kerala, traders said.
The contract later came off its high and ended at 14,262 rupees per 100 kg, up 0.2% from the previous close.
Prices of natural rubber in Kerala’s spot markets rose as demand from domestic stockists was up amid an ongoing supply crunch in the market. In Kochi and Kottayam, prices of the widely-traded RSS-4 variety were at 136-137 rupees per kg, up 1 rupee from the previous close, traders said.
Rubber Board data showed prices in Kottayam and Kochi at 137.50 rupees per kg, up by 0.50 rupee in both the places.
There is a supply crunch despite it being the peak season as rubber tapping has been delayed. Tapping activity is yet to gain pace in key growing areas, said A.M. George, the owner of George Rubbers in Kerala.
In early trade, benchmark rubber contracts on the Tokyo Commodity Exchange were slightly up on concern over low supply going ahead, analysts said.
However, the most active June contract on the Japanese bourse ended down 0.2% at 206.7 yen (about 133.3 rupees) per kg as investors booked profits.
The price of the RSS-3 variety in Thailand rose by 16 cents to $166 per 100 kg, Rubber Board data showed. In Malaysia, the price of the SMR-20 variety was up $1.65 at $152.40 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:
US$1 = 70.91 rupees
Edited by Nidhi Chugh