Spot rubber drops on strong yen weak oil

Print this page Posted on : 11-13-2007 by recycleinme.com

Strong yen and the corresponding weakness in oil futures hammered the international rubber prices on Monday.

RSS 3 fell sharply at its December futures to 283.7 yen (Rs.101.46) from 291.7 yen a kg incurring the maximum allowable one day loss of 8 yen while the current month November contracts nose dived by 13.6 yen to 275.6 yen (Rs.98.48) a kg at TOCOM.

The grade (spot) fell by 47 paise at Rs.101.78 a kg at Bangkok. The domestic markets were hit hardly also by the improvement in weather conditions apart from the pressure from global indices.

Sheet rubber closed at Rs.97.50 a kg against Rs.98.50 and Rs.99 a kg, respectively, at Kottayam and Kochi on buyer resistance amidst selling from traders.

MANUFACTURERS ACTIVE

Major manufacturers were active on the grade at the prevailing rate, sources confirmed. In futures, the December contract moved down to Rs.99 (Rs.100.56) a kg on MCX. On the NMCE, the November contract declined to Rs.97.49 (Rs.99.51), December to Rs.99.10 (Rs.100.55), January to Rs.100.49 (Rs.101.48) and February to Rs.101.75 (Rs.102.65) Per kg for RSS 4.

Prices per kg were RSS-4: Rs./97.50 (Rs.98.50); RSS-5: Rs.95(Rs.96); ungraded Rs.92 (Rs.93); ISNR 20 : Rs.93.50 (Rs.94.50) ; and latex 60% Rs.640 (Rs.64.50).

Source : Business Line