By Gautami Koli
MUMBAI – The December contract of rubber on the Indian Commodity Exchange ended lower today, tracking weakness in benchmark contracts on Tokyo Commodity Exchange, analysts said.
On ICEX, the December contract settled at 12,559 rupees per 100 kg, down 0.7% from Friday.
Futures contracts of rubber on TOCOM fell, tracking weakness in benchmark contracts on Shanghai Futures Exchange, which fell due to a rise in inventory at exchange-accredited warehouses, analysts said.
The most-active April contract on the Japanese bourse ended 0.2% lower at 160.4 yen (103.46 rupees) per kg.
As of Friday, inventories of rubber at Shanghai warehouses were at 188,480 tn, compared with 188,080 tn as on Thursday.
Expectations of a rise in global production of natural rubber and dwindling demand from China, a major consumer, also weighed on prices.
In Thailand, the price of RSS-3 grade rubber was down 25 cents at $138.24 per 100 kg, while in Malaysia, the SMR-20 grade was down $1.59 at $124.36 per 100 kg, according to data released by Rubber Board of India.
A fall in prices of natural rubber in the key spot market of Kochi, Kerala, also weighed on the contracts, traders said. Prices of natural rubber in Kochi declined due to subdued demand from local buyers and tyre manufacturers, said Biju Thomas, a rubber trader.
According to Rubber Board of India data, the RSS-4 variety was quoted at 125.0 rupees per kg in Kochi, down 0.50 rupee from Friday. In Kottayam, prices were steady at 125.5 rupees per kg.
Today’s closing prices of rubber, in rupees per kg, at Kottayam and Kochi, as detailed by the Rubber Board, and the change in prices, in rupees, compared with the previous close are given in the following table:
The bearish trend in the rubber market is likely to continue as recent rainfall in southern India and Sri Lanka is likely to be supportive for rubber plantations, traders said. End
US$1 = 73.12 rupees
Edited by Avishek Dutta