The Hindu Business Line : Buyers exercise caution in rubber market

PHYSICAL rubber prices were steady on Tuesday. Covering groups and purchase agents turned cautious as major manufacturers showed reluctance to enter the market at current levels.

Sheet rubber was firm at Rs 76.50 a kg at Kottayam but the grade improved by 25 paise to Rs 76.75 at Kochi in the absence of sellers.

Meanwhile, latex was quoted higher by Re 1 at Rs 54 as major processors were unwilling to sell below the quoted level but the transactions were almost nil.

Though the sharp gains in overseas markets failed to cheer the domestic spot prices, rubber futures firmed up on NMCE. February contract was traded at Rs 78.20 (77.42), March at Rs 79.42 (78.57), April at Rs 80.95 (79.66), and May at Rs 82.19 (81.13) a kg for RSS 4.

According to sources, traders were hesitant to undertake fresh commitments.

The February futures for RSS 3 improved sharply by Rs 2.31 to 232.4 yen (Rs 89.59) from 226.4 yen a kg at TOCOM. RSS 3 closed at Rs 86.22 against Rs 85.71 a kg at Bangkok spot.

Spot prices per kg were: RSS-4 76.50 (76.50), RSS-5 74.75 (74.75), ungraded 73.50 (73.50), ISNR 20 74.25 (74.25), and latex 60 per cent 54 (53).