The Hindu Business Line : Panic selling pushes rubber prices down

RUMOURS to depress grower sentiments dominated the domestic rubber markets on Thursday. Panic offloading from growers and traders pushed down the prices of all grades.

According to dealers, it was difficult to find out quantum buyers even at quoted prices as the negative news around the corners practically drained the trading interest from technically uninformed market participants.

Declining overseas indices fuelled the selling further. Sheet rubber shed 50 paise to close at Rs 52 at Kottayam but quoted steady at Rs 52.50 at Kochi

The NMCE futures stayed in tune with spot rubber, trading the January contract at Rs 52.01 against Rs 52.25 a kg with meagre volumes.

The February contract was quoted at Rs 53.01 (53.28), March contract at Rs 54.24 (54.37) and April contract at Rs 56.20 (56.24) per kg for RSS 4. A considerable decline in Chinese purchases due to a fall in tyre production was the prominent news from international scenario, sources said.

At Bangkok, RSS 3 closed at Rs 50.73 against Rs 51.02 a kg while the February futures for the same grade moved down to 118 yen from 119.7 yen a kg at TOCOM.

The physical rubber rates on Thursday were: RSS 4: Rs 52 (52.50); RSS 5 Rs 51 (51.25); ungraded Rs 49.25 (50); ISNR 20 Rs 50.50 (51.25); latex 60 per cent Rs 39.50 (40).

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