India Rubber: Settles higher on ICEX on short covering, TOCOM cues

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Rubber: Settles higher on ICEX on short covering, TOCOM cues

Tuesday, Feb 25

 

By Rahul Dhuri

 

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 – Rubber contracts on the Indian Commodity Exchange ended higher today due to short covering by investors. A rise in benchmark rubber contracts on  also supported gains on the domestic bourse, traders said. The most-active March contract on the domestic bourse ended at 13,415 rupees per 100 kg, up 0.4% from the previous close.

 

On TOCOM, rubber futures ended higher today, on concern over a fall in supply. Globally, supply is expected to decline due to smaller crops in Thailand, Indonesia, and Malaysia following severe pest attacks. The three countries are among the major producers of natural rubber, accounting for around 70% of the global

 

The most-active July natural rubber contract on TOCOM ended 0.3% higher at 184.8 yen (about 120.07 rupees) per kg. However, concern over the spread of coronavirus, which has affected 80,000 people across the globe and claimed 2,600 lives, capped sharp gains on TOCOM.

 

The  of the -3 variety in Thailand rose by 70 cents to $161.40 per 100 kg, data from the Rubber Board showed. In Malaysia, the price of the -20 variety was up 15 cents at $134.40 per 100 kg.
 

Back home, of natural rubber in Kerala’s spot markets were largely unchanged as subdued demand from domestic stockists capped a sharp rise in due to persistent supply crunch. Today, in Kochi and Kottayam, of the widely-traded RSS-4 variety were steady at 134-136 rupees per kg, traders said.

 

Data from the Rubber Board showed that in Kottayam and Kochi rubber was sold at 135.00 rupees per kg, down 0.50 rupee in both the markets.

 

The supply of the commodity remained relatively lower as the key growing region in Kerala was hit by adverse weather conditions. The rubber- season usually begins in October and continues till March. However, this year, it will end in February due to high temperatures, which would deepen the supply crunch, said Raju Varghese, the owner of Polachirayil Traders 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:

 

 

KOTTAYAM

KOCHI

GRADE

PRICE

CHANGE

PRICE

CHANGE

RSS-4

135.00

(-)0.50

135.00

 (-)0.50

RSS-5

130.00

(-)0.50

130.00

(-)0.50

ISNR-20

118.50

(-)0.50

NA

     NA

Latex

85.05

(-)0.55

NA

     NA

 

End

 

US$1 = 71.88 rupees

 

Edited by Maheswaran Parameswaran
 

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