Buyer resistance pulls down spot rubber

Print this page Posted on : 01-30-2008 by recycleinme.com

Spot rates surrendered on Tuesday. According to observers one of the reasons behind the bear domination in the markets was the news on excess stocks in domestic warehouses. Sheet rubber moved down to Rs 93.50 a kg from Rs 94 and Rs 93.75 a kg respectively at Kottayam and Kochi.

Bounce-back soon?

The market fell not on selling from dealers or growers but on buyer resistance and the prices are expected to bounce back soon since the production has been low during the season, an analyst said. RSS 3 (spot) improved to Rs 103.05 from Rs 102.62 a kg at Bangkok. The February futures for the grade closed better at 278.9 Yen (Rs 102.99) against 276.9 Yen a kg at TOCOM.

Futures weak

The rubber futures weakened quoting the March contract at Rs 94 (95.73) a kg on MCX. On NMCE, the February futures slipped further to Rs 92.58 (93.71), March to Rs 94.17 (95.45), April to RS 96.70 (97.44) and May to Rs 98.25 (99.75) per kg for RSS 4.

Open interest

The open interest was 7,968 (8,050) tonnes with 3,796 (4,010) tonnes in February, 3,005 (2,972) tonnes in March, 957 (919) tonnes in April and 210 (149) tonnes in May.

The volumes totalled 1,638 (788) lots trading 852 (278) lots in February, 505 (343) lots in March, 145 (123) lots in April and 136 (44) lots in May.

Spot prices were (Rs/kg): RSS-4: 93.50 (94); RSS-5: 91 (91.50); ungraded: 89.50 (90); ISNR 20: 90 (90.75) and latex 60 per cent: 58.50 (59).

Source : Business Line