Spot rubber declines on global cues

Print this page Posted on : 01-08-2008 by recycleinme.com

The domestic rubber turned lower on Monday followed by sharp declines in global futures. Reacting to the overall market mood, sheet rubber weakened to Rs.94.75 and Rs.95 a kg respectively at Kottayam and Kochi from Rs.95.50 a kg in the physical front. Major manufacturers were buyers on the grade up to Rs.95 a kg in the morning session and they continued to remain active at the counter even at lower levels. The trend was mixed.

FUTURES SLIP

The February futures for RSS 3 nosedived to 288.2 Yen (Rs.103.27) from 295.8 Yen a kg at TOCOM. The trend setter hit the lower circuit in all its distant contracts on heavy long liquidation catalysed by a bear strike in oil and gold. RSS 3 slipped to Rs.103.48 (103.69) a kg at Bangkok spot.

The January contract fell to Rs.95.70 from rS.96.68 a kg on MCX. On NMCE, the January contracts moved down to Rs.96.40 (96.98), February to Rs.97.82 (98.84), March to Rs.99.73 (100.73) and April to Rs.101.56 (102.52) a kg for RSS 4. The volumes were better at 1,590 (621) lots while the open interest stood at 10,138 (10,089) lots. The outstanding positions were 2,465 (2,616) lots in January, 4,487 (4,407) lots in February, 2,423 (2,367) lots in March and 763 (699) lots in April.

Spot prices were (Rs./kg): RSS-4: 94.75(95.50); RSS-5: 92(92.50); ungraded : 90.75 (91.50); ISNR 20: 91.50 (91.50) and latex 609 per cent: 61.50 (61.50).

Source : Business Line