Spot rubber declines on global cues

Print this page Posted on : 05-27-2009 by recycleinme.com

The physical rubber prices declined further on Tuesday. Another weak closing in the international markets and the absence of major consuming industries in the buyers queue kept the domestic prices under pressure during the session.

The market also appeared to be suffering from marginal selling pressure since it failed to break the Rs 100 level this time as a sign of technical weakness. Sheet rubber fell sharply to Rs 97 from Rs 99.50 a kg mainly on buyer resistance.

Futures weak

The June futures for RSS 4 moved down to Rs 96.30 (97.89), July to Rs 94.19 (95.18), August to Rs 91.50 (93.20) and September to Rs 89.75 (90.63) a kg on National Multi Commodity Exchange (NMCE).

The June futures for RSS 3 declined to ¥151 (¥155.2) (Rs 76.10), July to ¥154 (£157.4), August to ¥156.2 (¥159.9), September to ¥158.4 (¥162.4), October to ¥160.5 (¥164.2) and November to ¥162.3 (¥164) a kg on TOCOM. The grade fell further to ¥149.9, ¥152.5, ¥154.1, ¥156.6, ¥158.3 and ¥160.3 a kg consecutively during the night session. RSS 3 slipped to Rs 80.77 (80.87) a kg on Singapore Commodity Exchange (SICOM). It (spot) closed at Rs 82.98 (83.00) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 97 (99.50); RSS-5: 95.50 (97); ungraded: 93 (95.50); ISNR 20: 92.50 (93.50) and latex 60 per cent: 73.50 (73.50).

Source : Business Line