Covering buys prop up spot rubber

Print this page Posted on : 03-27-2009 by recycleinme.com

The physical rubber prices improved sharply on Thursday. Another positive closing in domestic and international futures kept the market extremely bullish during the day.

Sheet rubber flared up to Rs 82 from Rs 79.50 a kg on covering purchases. There were no fresh enquiries from the major consuming industries. "The market is in the midst of a technical rally, said Mr. B.Rajashekharan, a leading technical analyst and planter. "The current target is Rs 90 a kg for sheet rubber though a temporary weakness might happen as we are too close to the end of the current fiscal,'' he said.

Futures improve

RSS 4 improved sharply at its April futures to Rs 83.97 (80.75), May to Rs 85.05 (81.98), June to Rs 84.92 (82.10) and July to Rs 83.50 (81.21) a kg on National Multi Commodity Exchange (NMCE).

The April futures on TOCOM for RSS 3 firmed up to ¥148.7 (142.4) (Rs 76.58), May to ¥151.5 (144.9), June to ¥153 (146.6), July to ¥153.7 (146.5), August to ¥154.7 (147.1) and September ¥156 (149) a kg on TOCOM. RSS 3 moved up to Rs 75.59 (74.63) a kg on Singapore Commodity Exchange (SICOM). The grade closed at Rs 75.23 (74.79) a kg at Bangkok.

Spot prices were (Rs/kg): RSS-4: 82 (79.50); RSS-5: 80 (78); ungraded: 78 (76.50); ISNR 20: 78 (76) and latex 60 per cent: 60.50 (59).

Source : Business Line