Tight supplies help spot rubber gain

Print this page Posted on : 08-31-2007 by recycleinme.com

The rubber market gained smartly on Thursday. The market mood was catalysed mainly by bullish global indices and extremely tight domestic supplies amidst intensified rains over most of the plantation areas. RSS 4 flared up further to Rs.87.50 and Rs.88 a kg respectively at Kottayam and Kochi from Rs.86 a kg as covering groups and purchase agents turned aggressive in the main marketing centres. The prices might rule firm in the succeeding days if the current situation persists supported by fundamentals, an observer said.

FUTURES UP

The rubber futures followed suite recording handsome gains in all contracts on early trading but lost the benefits partially towards close probably on profit booking at higher levels.

The September contract for RSS 4 finished at Rs.88.25 against Rs.87 a kg on MCX. The September contract for the grade improved to Rs.89.11 (87.82), October to Rs.83.55 (82.75), November to Rs.82.01 (80.98) and December to Rs.81.27 (80.80) per kg on NMCE. The volumes were better at 3,453 (2,363) tonnes. Spot prices were (Rs/kg): RSS-4: 87.50 (86); RSS-5: 85(83.50); ungraded :82.50(81); ISNR 20:84.50 (83) and latex 60 per cent: 61.05 (61.05).

Source : Business Line