Thursday, Nov 1
By Rahul Dhuri
MUMBAI – The December contract of rubber on the Indian Commodity Exchange settled higher today, tracking gains in benchmark contracts on the Tokyo Commodity Exchange, analysts said.
On ICEX, the December contract ended at 12,630 rupees per 100 kg, up 89 rupees from Wednesday.
Rubber futures on TOCOM rose today due to bargain buying, after prices hit a two-year low of 159.6 yen (103.76 rupees) per kg on Wednesday, analysts said.
The most active April contract on the Japanese bourse ended 0.4% higher at 162 yen per kg today.
A rise in prices of natural rubber on the Shanghai Futures Exchange also lent support to contracts on TOCOM.
A strong yen against the dollar, however, capped the upside. A strong Japanese currency makes the yen-denominated rubber costlier for overseas buyers.
The overall outlook for rubber remains bearish due to a rise in global production and concerns over China’s economy due to ongoing trade tensions with the US.
In Thailand, RSS-3 grade rubber was down 73 cents at $137.53 per 100 kg, while in Malaysia, the SMR-20 grade was up $1 at $125.75 per 100 kg, according to data released by the Rubber Board of India.
A fall in prices of natural rubber in key markets of Kerala capped gains on the domestic bourse, said Joy Alencherry, a rubber trader based in Kottayam.
Rubber prices were down in spot markets due to subdued demand from stockists and tryemanufacturers, traders said.
Tapping activity has started in Kerala, which led to expectations of a rise in supply in the coming days, thereby creating bearishness in the market, said Biju Thomas, a trader.
In Kottayam, the widely-traded RSS-4 variety of rubber was today sold at 124.0-124.5 rupees per kg, down 0.50 rupee, traders said.
According to the Rubber Board, the RSS-4 variety in Kottayam was quoted 0.5 rupee lower at 125.5 rupees per kg, while in Kochi, prices were unchanged.
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:
| KOTTAYAM | KOCHI | |||
| GRADE | PRICE | CHANGE | PRICE | CHANGE |
| RSS-4 | 125.50 | (-) 0.50 | 125.50 | Unch |
| RSS-5 | 120.50 | Unch | 120.50 | Unch |
| ISNR-20 | 114.00 | (-)0.50 | NA | NA |
| Latex | 87.70 | (-) 2.10 | NA | NA |
OUTLOOK
Prices of natural rubber in the key spot markets of Kerala are likely to extend their fall in the coming days due to expectations of better availability by mid-November, traders said. End
US$1 = 73.45 rupees
Edited by Akshit Harsh
