By Rahul Dhuri
MUMBAI – Rubber contracts on the Indian Commodity Exchange were down today as investors booked profits after the most active March contract hit a two-week-high of 14,090 rupees per 100 kg in early trade, traders said. The contract ended at 13,930 rupees per 100 kg, down 0.8% from the previous close.
Prices of natural rubber in Kerala’s spot markets rose today due to improved demand. In Kochi and Kottayam, the widely-traded RSS-4 variety was sold at 135-137 rupees per kg, up 1 rupee from the previous day, traders said.
Data from the Rubber Board showed the commodity was quoted at 137 rupees per kg in Kottayam and Kochi, up 1 rupee in both markets.
A persistent supply crunch in the market also supported prices. The peak season for rubber tapping has been delayed in Kerala, said C.J. Augustine, owner of Chettiparambil Traders in Kerala.
On the global front, benchmark rubber contracts on Tokyo Commodity Exchange ended higher due to expectations of higher demand as concerns on coronavirus eased, which lifted sentiment, analysts said.
Also, China, the largest consumer od rubber, has allowed businesses to resume operations, after these were shut due to the coronavirus outbreak.
The most active July contract of natural rubber on the Japanese bourse ended at 181.4 yen (about 117.6 rupees) per kg, up 1.3% from the previous close.
The price of the RSS-3 variety in Thailand rose by 96 cents to $152.90 per 100 kg, Rubber Board data showed. In Malaysia, the price of the SMR-20 variety was up by 55 cents at $135.05 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 = 71.33 rupees
Edited by Avishek Dutta