By Rahul Dhuri
MUMBAI – The December contract of rubber on the Indian Commodity Exchange today settled at a three-month low 12,058 rupees per 100 kg, down 1.4% from Friday, tracking a fall in prices of natural rubber in the key spot markets of Kerala, analysts said.
Prices of natural rubber fell in the key spot markets of Kerala due to dwindling demand from domestic stockists and tyre manufacturers, said John Joseph, a rubber trader based in Idukki.
In the spot markets of Kerala, the widely-traded RSS-4 variety of rubber was sold at 118-120 rupees per kg today, down 1 rupee from Saturday, traders said.
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Expectations of higher imports of the commodity were seen weighing on prices, Joseph said.
According to data from the Rubber Board of India, the RSS-4 variety was sold at 120.50 rupees per kg in both Kochi and Kottayam, down 0.50 rupee from the previous close.
A fall in benchmark contracts on the Tokyo Commodity Exchange also weighed on rubber prices on the domestic bourse, said Joy Alencherry, owner of the Kottayam-based Maria Rubber Links.
In early trade, futures contracts of rubber on TOCOM traded at an over two-year low of 155.0 yen (98.44 rupees) per kg due to concern that escalating trade tensions were likely to hit the global economy and demand for rubber, analysts said.
The fall in prices on TOCOM was also due to a decline in benchmark contract of rubber on the Shanghai Futures Exchange.
However, the most active April contract on the Japanese bourse ended 0.6% higher at 156.5 yen per kg, due to a weak yen against the dollar.
A weak Japanese currency makes the yen-denominated rubber cheaper for overseas buyers.
In Thailand, the price of RSS-3 grade rubber was down $1.34 at $135.15 per 100 kg, while in Malaysia, the SMR-20 grade was down $1.06 at $122.6 per 100 kg, according to the Rubber Board.
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 | 120.50 | (-) 0.50 | 120.50 | (-)0.50 |
| RSS-5 | 115.00 | (-) 1.00 | 115.00 | (-) 1.00 |
| ISNR-20 | 109.00 | (-)0.50 | NA | NA |
| Latex | 83.50 | 1.10 | NA | NA |
OUTLOOK
In the coming days, prices of natural rubber in the key spot markets of Kerala are likely to extend their fall due to subdued demand from tyre manufacturers and expectations of a rise in imports of the commodity, traders said. End
US$1 = 71.64 rupees
Edited by Avishek Dutta
