Rubber drops further on weak global cues

Print this page Posted on : 11-14-2007 by recycleinme.com

The international trendsetter TOCOM continued to explore further lows hitting the lower circuit in all distant contracts catalysed by yen’s strength against dollar.

The December futures for RSS 3 closed at 272.2 (Rs.97.19) yen from 283.7 yen a kg at TOCOM while the grade closed at Rs.101.74, against Rs.101.78 a kg at Bangkok spot.

Reacting closely to the global mood, the domestic sheet rubber declined to Rs.96.50 from Rs.97.50 a kg both at Kottayam and Kochi, as most of the buyers stayed back keeping a low profile. The market made all-round declines though the volumes were low as there has been no improvement in arrivals. The weather was also good.

FUTURES DECLINE

The December futures for RSS 4 decline further to Rs.98.75 (Rs.99.09) a kg on MCX. The November contract for the grade weakened to Rs.97 (Rs.97.79), December to Rs.98.40(Rs.99.06), January to Rs.100.20(Rs.100.44) and February to Rs.101.44 (Rs.101.54) a kg on NMCE. The open interest stood ar 4,473 (4,412) lots and volumes 1,345 (1,324) lots.

The market regained the initial losses partially towards close on short covering at lower levels.

Physical rubber prices were (Rs./kg): RSS-4: 96.50 (97.50); RSS-5: 94(95); Ungraded : 90.50 (92); ISNR 20: 93(93.50) and Latex 60% 64(64).

Source : Business Line