Financial Daily from THE HINDU group of publications
Monday, Nov 24, 2003
Financial Daily from THE HINDU group of publications Monday, Nov 24, 2003 |
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Agri-Biz & Commodities
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Rubber Rubber prices may remain static Aravindan
Kottayam , Nov. 23 THE rubber market remained range-bound over the week even though the undercurrent appeared weak. Opening red on Monday, the rates surrendered further on Wednesday but later remained in a passive mood till Friday. RSS 4 which opened at Rs 53 a kg on Monday closed at Rs 52.50 on Friday after touching an intraday low of Rs 52 on Wednesday. The international market at Bangkok ended at Rs 57.50 against Rs 59.96 on the previous weekend. The physical market was rather inactive compared to previous weeks. The peak-season inflow was not sufficient to drag the prices down as the growers were not interested in a sell off. In the futures market, both March and April futures opened better last Monday and managed to close higher while all other contracts ended weak. All the five contracts inched up on Tuesday following TOCOM recovery but fell back on Wednesday. Technical correction towards the weekend pushed up futures prices and the benchmark April contract ended at Rs 60.65 a kg on Friday. A total of 2,051 lots of open interest were recorded as on November 21. International rubber prices went down further during the week as China's State Materials Reserve Bureau sold 5,000 tonnes of natural rubber from the State-held reserves by auction last Sunday. Most Chinese buyers kept away from the market waiting for the prices to come down. There are so many factors which contribute to the recent bull-run in the rubber prices. The recovery in global economy, the progress of US business sector, the strong Chinese presence in the market, the activities of International Tripartite Rubber Organisation, the declining global NR stockpile, the fluctuations in the value of currencies in producing countries etc are the major reasons behind the strong rubber prices. According to the reports from the futures market, prices are expected to be flat next week. The festive mood would hardly allow any trades to take place not only in South Asia but also across major rubber markets. The spot rubber market might continue to move in a narrow range as the Rs 52-level supported sheet rubber last Wednesday. But any close below the said level could initiate a fresh selling spree in the trading circles.
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