Covering buys keep spot rubber firm

Print this page Posted on : 12-29-2007 by recycleinme.com

The physical rubber prices closed flat on Friday. The market was sluggish on early trading as global signals were bearish but regained the losses towards close on covering purchases. Sheet rubber finished unchanged at Rs.94 a kg at Kottayam and Kochi. Major manufacturers were buyers on the grade up to Rs.93.50 a kg, sources confirmed.

The January futures for RSS 3 concluded the half day session at 294.2 yen (Rs.102.54) against 294.6 yen a kg at TOCOM. The grade (spot) slipped to Rs.102.40 (102.90) a kg at Bangkok.

FUTURES IMPROVE

The rubber futures improved on NMCE. Since, TOCOM, the trend setter would remain closed till 4th January 2008, there is a chance for the reentry of speculators to encash the situation.

The January futures improved to Rs.96.99 (96.16), February to Rs98.82 (97.57), March to Rs.100.51 (99.25) and April to Rs.102.20 (101.31) per kg for RSS 4. The volumes stood at 1,753 (1,457) lots and open interest 8,745 (8,379) lots. The outstanding positions were 3,055 (3,082) lots in January, 3737 (3,544) lots in February, 1,567 (1,445) lots in March and 386 (308) lots in April.

Spot prices were (Rs./kg) : RSS-4: 94 (4); RSS-5: 92 (92); ungraded : 90 (90); ISNR 20: 91 (91) and latex 60 per cent: 61.50 (61.50).

Source : Business Line