By Rahul Dhuri
MUMBAI – Rubber futures on the Indian Commodity Exchange settled higher today, tracking key spot markets in Kerala, traders said. The most active April contract on the bourse ended at 13,284 rupees per 100 kg, up 0.9% from Tuesday’s close.
In key spot markets of Kerala, prices of natural rubber rose due to improved demand from stockists amid the ongoing supply crunch, said Raju Varghese, the owner of Kottayam-based Polachirayil Traders.
Expectations of a pick-up in demand from tyre manufacturers also supported prices today. In Kottayam and Kochi, the RSS-4 variety was quoted 1 rupee higher at 129-130 rupees per kg, traders said.
However, data from the Rubber Board showed that the RSS-4 variety was quoted at 129 rupees per kg today, unchanged in both the markets.
Rubber futures on the Tokyo Commodity Exchange traded 1% lower today, tracking weakness in crude oil prices on the New York Mercantile Exchange. The most active August contract of rubber on the Japanese bourse ended at 192 yen (118.44 rupees) per kg, down 1.6% from the previous close.
Crude oil prices on NYMEX fell due to profit booking, after hitting a four-month high of $59.57 per barrel on Tuesday. Prices had surged earlier on hopes that the Organization of the Petroleum Exporting Countries and its allies will extend their production cuts till the end of this year. Rubber prices take cues from crude oil as it is used to produce synthetic rubber, a substitute for natural rubber.
However, a weak yen against the dollar, coupled with gains on the Shanghai Futures Exchange, limited the downside in rubber prices on TOCOM. A weak Japanese currency makes the yen-denominated rubber cheaper for overseas buyers.
In Thailand, RSS-3 grade rubber was up by 47 cents at $178.10 per 100 kg. However, in Malaysia, the SMR-20 grade variety was down 50 cents at $148.05 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:
|
KOTTAYAM |
KOCHI |
|||
|
GRADE |
PRICE |
CHANGE |
PRICE |
CHANGE |
|
RSS-4 |
129.00 |
Unch |
129.00 |
Unch |
|
RSS-5 |
126.00 |
0.50 |
126.00 |
0.50 |
|
ISNR-20 |
124.00 |
(-)0.50 |
NA |
NA |
|
Latex |
82.40 |
Unch |
NA |
NA |
OUTLOOK
In the coming days, prices of natural rubber in the key spot markets of Kerala are likely to move in a narrow range because expectations of a rise in imports are seen capping any sharp gains, market participants said. End
US$1 = 68.82 rupees
Edited by Akshit Harsh
