Rubber futures ban triggers panic in spot market
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Kottayam, May 8 Physical rubber prices fell sharply on Thursday. All futures contracts in rubber, chana, soya oil and potato currently being traded on all National Exchanges were suspended after the closing of trades on May 7, 2008 as per the directives of Forward Markets Commission ( FMC). This order of suspension will be effective till September 6, 2008 and will stand revoked unless notified otherwise. The announcement has created a panic in the rubber sector. The officials of organisations and others representing growers, traders etc were reluctant to make any comments as they were awaiting further developments since the announcement came so suddenly and surprisingly.
NO AGGRESSIVE SALES
RSS 4 declined to Rs 116 from Rs 120 a kg at Kottayam and Kochi on buyer resistance. According to sources, there has been no aggressive selling in the market and a major tyre manufacturer was buyer on sheet rubber at the quoted levels. In the international scene, RSS 3 ( spot) improved to Rs 121.20 from Rs 119.28 a kg at Bangkok. The grade weakened at its June futures to ¥ 305.7 ( Rs 122.22) from ¥ 307 a kg at TOCOM.
Spot prices were ( Rs/ kg): RSS- 4: 116 ( 120); RSS- 5: 114 ( 118); ungraded: 112 ( 115); ISNR 20: 113 ( 117) and latex 60 per cent: 81 ( 81).
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Source : Business Line |
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