Covering buys push up sheet rubber

Print this page Posted on : 04-30-2009 by recycleinme.com

Spot rubber showed a mixed trend on Wednesday. The undercurrent appeared bullish as sheet rubber improved to Rs 101.50 from Rs 100 a kg on covering purchases. A firm closing in the May futures on NMCE and the absence of quantity sellers in the physical market kept the rates on the higher side, an observer said. The volumes continued to be meagre. "The present price hike is a phenomenon peculiar to Indian market as the international price rules below Rs 20-22 a kg," said Mr. N Radhakrishnan, President Cochin Rubber Merchant's Association. Growers were holding stocks deliberately to encash the stock with them at the opportune moment. There were some forces playing in between, he added.

Futures improve

The May futures for RSS 4 closed at Rs 103.25 (102.32), June at Rs 98.20 (98.32), July at Rs 93.75 (94.20) and August futures at Rs 90.25 (91.50) a kg on NMCE. RSS 3 firmed up to Rs 81.04 (80.39) a kg on Singapore Commodity Exchange (SICOM). It's spot closed better at Rs 82.09 (81.57) a kg at Bangkok. The Tokyo Commodity Market (TOCOM) remained closed on account of Showa Day.

Spot rates were (Rs/kg): RSS-4: 101.50 (100); RSS-5: 99 (97.50); ungraded: 94 (94); ISNR 20: 96.50 (95) and latex 60 per cent: 71 (71).

Source : Business Line