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Thursday, September 28, 2023

India Rubber: Settles higher on ICEX on bargain buying post 1-wk low

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 13,023 rupees per 100 kg, on Monday, traders said. The most-active April contract ended at 13,106 rupees per 100 kg, up 0.4% from the previous close.

However, a fall in prices of natural rubber in the key spot markets of Kerala capped sharp gains in rubber contracts on ICEX, said C.J. Augustine, owner of the Idukki-based Chettiparambil Traders.

Prices of natural rubber in spot markets were down due to subdued demand from tyre manufacturers. In Kottayam and Kochi, the RSS-4 variety was today quoted in the range of 126-127 rupees per kg, down 1-2 rupees from Monday, traders said.

However, data by India’s Rubber Board showed that the RSS-4 variety was quoted largely unchanged at 128 rupees per kg today.

In the global arena, rubber contracts on Tokyo Commodity Exchange were down as Thailand is likely to delay planned curbs on exports by over a month due to General Elections in the country, analysts said. The most-active August contract on the Japanese bourse ended down 1% at 182.2 yen (113.66 rupees) per kg.

Earlier this month, the world’s top producers–Thailand, Indonesia and Malaysia–had said they would cut rubber exports by a total of 240,000 tn for four months from April under the ‘Agreed Export Tonnage Scheme’ to boost rubber prices.

Indonesia and Malaysia will start the planned curb from Apr 1, while Thailand will start it from May 20, according to a media report.

However, a decline in stocks of rubber at Shanghai exchange warehouses cushioned a sharp fall on TOCOM. Rubber contracts on TOCOM take cues from benchmark contracts on the Shanghai Futures Exchange.

As of Monday, stocks of rubber at Shanghai warehouses were at 131,170 tn, compared with 134,060 tn a week ago, data showed.

In Thailand, the price of RSS-3 grade rubber was up 78 cents at $176.40 per 100 kg. In Malaysia, the price of SMR-20 grade variety was up 64 cents at $147.35 per 100 kg, according to data from India’s Rubber Board.

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:

RSS-4 128.00 Unch 128.00 Unch
RSS-5 125.00 Unch 125.00 Unch
ISNR-20 124.00 Unch NA      NA
Latex 82.95 Unch NA      NA


Futures contracts of rubber on Indian Commodity Exchange are likely to trade on a bearish note in the week ahead, tracking benchmark contracts on Tokyo Commodity Exchange, traders said. End

US$1 = 68.86 rupees

Edited by Maheswaran Parameswaran

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