Spot rubber downtrend continues

Print this page Posted on : 09-30-2008 by recycleinme.com

Rubber prices resumed the downtrend on Monday. The prices fell further on buyer resistance as the international indices were hit badly on heavy long liquidation pushing the October contract deep in to the minus territory on late trading in TOCOM.

Sheet rubber RSS 4 declined to Rs 121 from Rs 125 a kg as on Saturday. The market made all-round declines amidst moderate volumes. Major manufacturers were totally inactive and they were not expected to join the buyers queue during the week owing to Ramadan Holidays.

Continuous tapping

Though there has been no heavy selling in the domestic market positive reports on uninterrupted tapping and production seemed to be influencing the traders' sentiments putting pressure on the prices. RSS 3 fell further at its October futures to ¥285 (Rs 126.60) from ¥299.3, November to ¥275.6 (290.4), December to ¥268.5 (278.6), January to ¥266.5 (275.5), February to ¥267.1 (275.7) and March to ¥266.9 (276.4) a kg at TOCOM. It (spot) weakened to Rs 129.07 (130.24) a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 121 (125); RSS-5: 118 (123); ungraded: 114 (120); ISNR 20: 116 (120.50) and latex 60 per cent: 77 (77).

Source : Business Line