Spot rubber improves on supply fears

Print this page Posted on : 04-24-2009 by recycleinme.com

Kottayam, April 23

The domestic rubber prices made excellent gains on Thursday. The market moved up mainly on supply concerns and any quantity buying might take it above Rs 100, an observer said.

Sheet rubber closed higher at Rs 98 (95) as traders remained extremely aggressive on the grade. There were no fresh quotes from the tyre sector. The market took a turn gaining strength from the lower resistance at Rs 90 and if it succeeds in breaking the previous high of Rs 100, then it would try to explore the next level at Rs 115 a kg for sheet rubber said Mr.B.Rajashekharan, a leading analyst and planter.

But if it fails to break the Rs 100 level, the succeeding fall would be even sharp and hence the traders are advised to be cautious around that level, he added.

Futures gain

The May futures for RSS 4 flared up to Rs 100.20 (96.35), June to Rs 98.25 (94.48), July to Rs 95.08 (91.43) and August to Rs 92.52 (89.83) a kg on National Multi Commodity Exchange (NMCE).The April contract for RSS 3 slipped to ¥143.2 (¥145.3) (Rs 72.72) while its May futures improved to ¥151.5 (¥148.6), June to ¥152.7 (¥149.4), July to ¥154.8 (¥151.3), August to ¥156 (¥151.9) and September to ¥157.8 (¥153) a kg on Tokyo Commodity Exchange (TOCOM). RSS 3 weakened to Rs 79.19 (80.03) a kg on Singapore Commodity Exchange (SICOM) while its spot moved down to Rs 81.97 from Rs 82.14 a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 98 (95); RSS-5: 96 (92.50); ungraded: 93 (90); ISNR 20: 92 (91) and latex 60 per cent: 70 (70).

Source : Business Line