Spot rubber recovers on short covering
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Domestic rubber showed a better trend on Tuesday. The market opened weak but moved up later on short covering. The absence of sellers at lower levels kept the covering groups visibly active during the session. Sheet rubber RSS 4 improved to Rs 86 from Rs 81 a kg on Monday. There were no fresh quotes from the tyre sector. Rubber prices have plummeted to much lower levels. There might be ever so many reasons for this fall, according to analysts. But the ultimate sufferers are the small and marginal farmers.
The disappointing factor of this phenomenon is that the tapers are not prepared to forgo at least a part of their wages. So also the cost of inputs. It will also never come down. The growers on their part never anticipated that the price would touch such high. But if does not recover and reach at least Rs 100 it is a serious blow to the growing community as a whole who have been clamouring for a remunerative for long, said Mr. Sebastian Thomas, a small grower.
Futures mixed
RSS 3 weakened at its October contract to ¥193 (Rs 90.15) from ¥194.2 and November to ¥193 (¥196.6) a kg, while its December futures firmed up marginally to ¥192 (¥190.9), January to ¥191.9 (¥190.2), February to ¥191.4 (¥190.3) and March to ¥193.1 (¥191) a kg at TOCOM. The grade (spot) fell further to Rs 95.74 from Rs 97.10 a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 86 (81); RSS-5: 82 (79); ungraded: 78 (74); ISNR 20: 81 (78) and latex 60 per cent: 70 (70).
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Source : Business Line |
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