The Hindu Business Line : Rubber prices rally on short-covering

DISCOUNTING negative factors, spot rubber prices rallied on Wednesday. Major grades improved on short covering and fresh buying from the covering groups and purchase agents.

Market players expect that the Government will reduce the tax on closing stocks to four per cent soon and the absence of sellers continued to favour the uptrend amidst low arrivals. Sheet rubber RSS 4 improved to Rs 53.50 at Kottayam and Rs 53.25 at Kochi from Rs 53 on Tuesday.

NMCE rubber futures showed a firm trend with moderate volumes. The March contract was traded at Rs 53.50 (Rs 52.95), April contract at Rs 56.50 (Rs 56.36), May contract at Rs 58.25 (Rs 58.25) and June at Rs 59.56 (Rs 59.23) per kg for RSS 4.

The April futures for RSS 3 at TOCOM was better at 135.6 yen against 133.6 yen on Tuesday while the same grade closed steady at Rs 56.83 at Bangkok.

The physical rubber prices per kg follow: RSS-4: Rs 53.50 (Rs 53); RSS-5: Rs 52.50 (Rs 52); ungraded: Rs 51.50 (Rs 51); ISNR 20: Rs 52.75 (Rs 52.25); and latex 60 per cent: Rs 39.50 (Rs 39).

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