Spot rubber declines further
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Rubber prices moved down further on Monday. The market lost ground on buyer resistance amidst selling from dealers and growers. The sentiments were also hit by a weak closing in global rubber futures and rumours that sheet rubber may hit Rs 70 a kg level shortly. The grade declined to Rs 79 from Rs 81 a kg on Saturday last. According to sources the fresh quote from the tyre sector was even below at Rs 78 a kg for RSS 4.
The rubber futures on the Tokyo Commodity Exchange fell back on long liquidation at the opening amidst declines in oil futures and Yen's strength against dollar. But covering purchases became active subsequently reflecting Yen's weakness on late trading. The market recovered the early losses partially towards the morning close.
Futures weaken
Prices moved in a narrow range during the afternoon. In futures, RSS 3 weakened at its November contract to ¥158 (Rs 80.47) from ¥164.5, December to ¥162 (165), January to ¥166 (167.2), February to ¥169.4 (169.7), March to ¥171.6 (172.3) and April to ¥174.3 (174.7) a kg at TOCOM. The grade finished marginally higher at Rs 89.85 (89.70) a kg at Bangkok.
Spot rates were (Rs/kg): RSS-4: 79 (81); RSS-5: 76 (78.50); ungraded: 72 (74); ISNR 20: 76.50 (78) and latex 60 per cent: 57 (57).
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Source : Business Line |
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