Analysts attributed the sharp drop in prices this week to global cues related to a weak Chinese economy and oversupply in global markets.
KOCHI, INDIA (Commodity Online): India Rubber prices have fallen from 14900 per 100 kg levels to Rs 14000 per 100 kg levels so far this month as holidays weakened trading and government market support measures failed to make much impact in the industry.
Analysts attributed the sharp drop in prices this week to global cues related to a weak Chinese economy and oversupply in global markets.
Traders are expecting prices to crash further to Rs 13000 per 100 kg levels soon.
May futures slipped to Rs 138.09 (Rs 143.84), June to Rs 140.51 (Rs 146.36) and July to Rs 140.76 (Rs 146.62) while the Rubber Mini May futures dropped to Rs 139.25 (Rs 142.38) on the National Multi Commodity Exchange. RSS 3 (spot) nosedived to Rs 128.88 (Rs 135.61) at Bangkok. April futures weakened to ¥201.7 ($ 118.82) on the Tokyo Commodity Exchange.
Meanwhile, TOCOM Rubber futures hit a four and a half year low on stop lossing selling amidst weak Japan export data and falling Crude oil prices.
The Tokyo Commodity Exchange rubber contract for September delivery dropped 5.0 yen to settle at 201.4 yen ($1.97) per kg. It fell as much as 5.9 yen, or 2.8 percent, to an intraday low of 200.5 yen per kg, the lowest since October 2009.
Brent Crude Oil fell to $109 a barrel on Monday as investors took profits after steep gains, but uncertainty surrounding the crisis in Ukraine checked the decline. The most-active rubber contract on the Shanghai futures exchange for September delivery fell 525 yuan to finish at 13,925 yuan ($2,200) per tonne. The front-month rubber contract on Singapore’s SICOM exchange for May delivery last traded at 166.30 US cents per kg, down 11.5 cents
– CommodityOnline
