KOTTAYAM, INDIA (Commodity Online): India Rubber prices have climbed from Rs 14400 per 100 kg levels to Rs 14800 per 100 kg levels towards the end of this month but buyer resistance continues to weigh on market sentiments, traders reported.
In the spot market RSS4 grade rubber prices slipped from Rs 14800 levels to Rs 14750 levels as trading volumes remained low. July futures dropped to Rs 148.15 (Rs 148.91) and August to Rs 148.01 (Rs 148.16) while the September futures firmed up to Rs 147.20 (Rs 146.79) on the National Multi Commodity Exchange. RSS 3 (spot) improved to Rs 130.14 (Rs 129.31) at Bangkok. June futures closed at ¥207.8 (Rs 122.58) on the Tokyo Commodity Exchange.
Spot rubber rates (Rs /kg): RSS-4: 147.50 (148), RSS-5: 142.50 (143); Ungraded: 137.50 (138) ISNR 20: 132 (132.50) and Latex 60%: 122 (122). (BL)
India’s natural rubber output decline in May, falling 10.2% on-year to 53,000 tn, Rubber Board data showed. Production had fallen 3.8% on-year in April. India’s imports of natural rubber surged 64.3% on-year to 34,419 tn in May, and 30% higher than imports that took place in April. Exports fell considerably by 94.1% on-year to 11 tn in May. Rubber inventories were at 205,000 tn at May-end, down from 235,000 tn a year ago. India’s rubber consumption in May was 83,500 tn, higher than 81,500 tn in April and 81,325 tn a year ago.
The fall in rubber prices have become a political issue in Kerala that accounts for over 90% of rubber production in India. According to P C George, Kerala Government Chief Whip in the Legislative Assembly, the Union Government has always favored the tyre companies at the cost of growers. This is driving rubber growers to the edge of suicide.
“Years back, any one in Kerala who owned four acres of rubber could easily afford a Mercedes and today people who own the same acreage have only one option before them and it’s to commit suicide,” George said.
Global markets
-Benchmark Tokyo rubber futures snapped a five-session rally to head lower on Tuesday, pulling back from a more than two-month high in the previous day, as profit-taking and a decline in crude oil market pressured prices.
-The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for November delivery dropped 1.3 yen, or 0.6 percent, to settle at 217.0 yen ($2.13) per kg.
-But the front-month contract for June delivery, which expired on Tuesday, rose 2.1 yen to end at 206.1 yen, helped in part by buys from producers, dealers said.
-“The benchmark contract came under pressure as investors took profit to secure short-term gains,” Jiong Gu, analyst at Yutaka Shoji Co, said.
-Softer crude oil prices were also behind the weak market tone, according to dealers.
– Commodity Online
