The Hindu Business Line : Rubber declines as buyers turn cautious

SPOT rubber prices slipped on Wednesday. After a day's hectic activity, the buyers turned more cautious with a wait and watch policy maintaining a low profile.

Profit booking from dealers at higher levels had put pressure on sheet rubber price, which declined to an intraday low of Rs 53.50 before recovering to Rs 53.75 against Rs 54 on Tuesday. Ungraded rubber closed steady while the other grades lost on buyer resistance. Meanwhile, widespread rains were reported from various plantations around the State.

The rubber futures showed a better trend quoting the near month November delivery at Rs 54.58 (54.47) on Wednesday. The December delivery was quoted at Rs 54.75 (54.62), January at Rs 55.75 (55.66) and February delivery at Rs 56.92(56.92) per kg for RSS 4. The market opened weak but improved slightly towards mid-session.

The November futures for RSS 3 declined further to 138.5 yen against 139.7 yen a kg at TOCOM.

The spot market rates per kg on Wednesday were: RSS 4 53.75 (54); RSS 5 52.50 (53); Ungraded 50 (50); ISNR 20 52.25 (52.50); & latex 60% 40.25 (40.50).