Rubber slips further on Dec 7, 2012

KOTTAYAM, DEC. 7:

Domestic rubber prices made further declines on Friday. In spot, major consuming industries continued to sideline the market probably as they were hesitant to buy in the midst of the peak production season.

Though the growers are reported to be holding their stocks since the prices are running very low, selling from dealers kept the commodity under pressure during the past couple of sessions. A break below the Rs 160-level during early trades on the National Multi Commodity Exchange created an almost panic situation in the local market. The trend was mixed.

Sheet rubber weakened to Rs 159 (160) a kg, according to traders. The grade was steady at Rs 160 a kg at Kottayam and Kochi, according to Rubber Board.

RSS 4 weakened at its December series to Rs 160.15 (161.82), January to Rs 162.20 (163.72), February to Rs 164.50 (166.26), March to Rs 166.70 (168.72) and May to Rs 172.40 (179) a kg on the NMCE.

RSS 3 (spot) slipped to Rs 164.85 (165.25) a kg at Bangkok.

The December futures moved down to ¥250.9 (Rs 165.79) from ¥251 during the day session and then to ¥249.7 (Rs 165.08) in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 159 (160); RSS-5: 155 (155); ungraded: 148 (150); ISNR 20: 155 (155) and latex 60 per cent: 106 (106).

Source: Business Line