Supply woes prop up spot rubber

Print this page Posted on : 08-30-2007 by recycleinme.com

The rubber prices firmed up on Wednesday. The markets moved under the influence of domestic supply concerns as lingering rains put pressure on production even during the Onam season. An improvement in RSS 3 (spot) by Rs.1.13 to Rs.86.46 a kg in Bangkok supported the trend further, sources said.

In the physical front, sheet rubber improved to Rs.86 from Rs.85 as kg on the previous weekend. The market made all-round gains followed by renewed buying interest shown by the covering groups.

FUTURES RISE

On NMCE, the September contract moved up to Rs.87.89 (85.56), October to Rs.82.61 (80.92), November to Rs.80.90 (80.05) and December to Rs.80.80 (79.90) per kg for RSS4. The September contract was better at Rs.87.11 against Rs.86.39 a kg on MCX.

The open interest stood at 4,791 (4,874) lots with 2,350 (2,508) lots in September, 1,625(,616) lots in October, 618(601) lots in November and 198(149) lots in December on NMCE.

The volumes totalled 2,363 (760) lots. RSS 3 declined at its September futures to 240.5 Yen (Rs.86.60) a kg from 245.4 yen a kg at TOCOM.

Spot prices per kg were: RSS-4: 84 (85); RSS-5: 83.50(83); ungraded : 81(80); ISNR 20: 83(82.50) and latex 609 per cent : 61.05(60).

Source : Business Line