Spot rubber improves on covering buys

Print this page Posted on : 10-08-2011 by recycleinme.com

Kottayam, Oct. 7

Rubber market improved on Friday. In spot, prices strengthened following the moderate gains on the National Multi Commodity Exchange(NMCE). The market opened better and firmed up further on covering purchases at lower levels.

Sheet rubber increased to Rs. 211 from Rs. 209 a kg both at Kottayam and Kochi respectively, according to traders and the Rubber Board.

Developments in the global economy particularly the sovereign debt issues in US and Europe will be crucial in building market confidence, attracting speculative investments in emerging markets and making the currencies of Thailand, Indonesia and Malaysia stronger.

Therefore, any improvement in NR could be expected only after the global economy returns to a recovery path. While natural rubber market may continue to stay fragile in the short-term due to exogenous factors, the demand-supply situation can hold the price according to Mr Jom Jacob, Senior Economist, Association of Natural Rubber Producing Countries (ANRPC).

In futures, the October series improved to Rs. 214.99 (210.71), November to Rs. 210.69 (206.25), December to Rs. 211.35 (207.09), January to Rs. 212.75 (208), February to Rs. 215.44 (210.15) and March to Rs. 215.51 (212.81) a kg for RSS 4 on the NMCE.

RSS 3 (spot) firmed up to Rs. 203.91 (201.37) a kg at Bangkok. The October futures for the grade flared up to ?308.2 (Rs 197.50) from ?300.1 a kg during the day session but then dropped to ?305 (Rs 195.45) a kg in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 211 (209); RSS-5: 208 (206); ungraded: 200 (197); ISNR 20: 202 (201) and latex 60 per cent: 129 (130.50).

Source : Business Line