By Rahul Dhuri
MUMBAI – Futures contracts of rubber on the Indian Commodity Exchange ended higher due to bargain buying by market participants after prices hit a one-week low of 12,640 rupees per 100 kg on Tuesday. The most active March contract settled at 12,864 rupees per 100 kg, up 1.1% from the previous close.
Gains in benchmark contracts on Tokyo Commodity Exchange also supported contracts on ICEX. Rubber futures on TOCOM traded higher today, tracking crude oil prices on New York Mercantile Exchange, as well as Asian equity indices, analysts said.
Crude oil futures on NYMEX rose nearly 1% today due to a decline in US inventories. The American Petroleum Institute reported late on Tuesday that US crude supplies fell by 4.2 mln barrels in the week ended Friday.
Rubber prices take cues from those of crude oil, as the latter is used to produce synthetic rubber, a substitute for natural rubber.
The most active August contract of rubber on the Japanese bourse ended 0.9% higher at 200.8 yen (129.52 rupees) per kg.
In Thailand, RSS-3 grade rubber was up $1.80 at $168.70 per 100 kg. In Malaysia, the SMR-20 grade was up $1.46 at $147.30 per 100 kg, according to data from India’s Rubber Board.
In spot markets in India, prices of natural rubber were largely unchanged today due to limited demand from tyre manufacturers, traders said.
In Kottayam and Kochi, the RSS-4 variety was quoted in the range of 126-127 rupees per kg, unchanged from Tuesday, traders said. Data from Rubber Board showed that the RSS-4 variety in Kochi and Kottayam was quoted at 126.5 rupees a kg, unchanged in both markets.
Today’s closing prices of rubber, in rupees per kg in Kochi and Kottayam, as detailed by the Rubber Board, and the change in prices, in rupees, compared with the previous close are given in the following table:
In the coming days, rubber contracts on ICEX are likely to extend gains tracking a rise in global markets, traders said. However, expectations of higher imports are seen preventing sharp gains. End
US$1 = 71.22 rupees
Edited by Avishek Dutta