The Hindu Business Line : Rubber closes at all-time high

The domestic physical rubber closed at an all-time high on Wednesday. Sheet rubber RSS 4 finished at Rs 85 a kg at Kottayam and Kochi against Rs 84 and Rs 84.50, respectively on Tuesday.

The reason behind the current uptrend is not consumer buying, an analyst told Business Line. Since the market is expected to firm up further after the Easter holidays, certain dealers and covering groups are quoting higher to attract better supply to fulfil their requirements.

Major manufacturers remained active on sheet rubber up to Rs 84.50 a kg but there were no quantity sellers on the grade even at higher levels. Most of the growers preferred to hold the stock targeting Rs 90 a kg.

Futures steady

The NMCE rubber futures were quoted almost steady as the overseas indices turned weak. The April contract was traded at Rs 84.85 (84.48); May Rs 87.35 (87.08); June Rs 88.81 (88.66); and July contract at Rs 89 (88.76) per kg for RSS 4.

The May futures for RSS 3 declined to 254.3 yen (Rs 96.10) from 254.3 yen a kg at TOCOM. The grade improved from Rs 96.29 to Rs 96.94 a kg at Bangkok spot.

The spot rubber rates per kg were as follows: RSS-4: 85 (84); RSS-5: 84 (83); ungraded: 83 (82); ISNR 20: 84 (83.25); and latex 60%( per litre): 60 (59.50).