The Hindu Business Line : Low turnover in spot rubber

, The week concluded with a steady but record closing in domestic spot rubber prices. The traders were totally in a holiday mood with only one more day to Easter. Transactions were in a low key.

The tendency to hold excess stocks continued to depress the arrivals leading to dangerous demand and supply imbalance in the main marketing centres. According to informed sources, consumer buying at higher levels was still narrow and the sentiments were driven by speculators.

Sheet rubber RSS 4 ended static at Rs 85.50 a kg both at Kottayam and Kochi in a dull trading session. The market might gather momentum as it has crossed the critical levels and the much-dreamed $2 mark would be attained within a short span if the international markets are also favourable.

The pre-monsoon showers since last few days could enhance latex production to a certain extent. But it would not harm the prevailing bull run since the demand for the raw materiel is much greater than the supply in April.

Futures firm

The rubber futures ended firm on NMCE. The April delivery contract closed at Rs 85.27 (Rs 85.17), May at Rs 87.62 (Rs 87.45) June at Rs 89.40 (Rs 89.02) and July at Rs 89.65 (Rs 89.28) per kg for RSS 4. According to market circles most of the traders were optimistic about a positive opening on Monday.

The trading volumes totalled 435 lots registering 14 lots in April, 229 lots in May, 123 lots in June and 69 lots in July.

Physical rates a kg were: RSS-4: Rs 85.50 (Rs 85.50); RSS-5: Rs 84.50 (84.50); ungraded: Rs 83.50 (Rs 83.50); ISNR 20: Rs 84.50 (Rs 84.50) and latex 60 per cent (per litre): Rs 60 (Rs 60).