The Hindu Business Line : Spot rubber goes past Rs 95-mark

The domestic rubber prices resumed the upward journey breaking the much anticipated Rs 95-level on Wednesday. Covering groups and purchase agents pushed up the prices further taking advantage of the wide gap between the demand and supply positions and firm overseas indices.

RSS 4 improved to Rs 96 a kg at Kottayam and Kochi from Rs 94.50 a kg on Tuesday. The grade was even traded at Rs 97 a kg at the first half of the morning session. But the absence of genuine consumer buying seemed to be taking the steam out of the market at those levels.

Major manufacturers preferred to step aside as their quotes for the week were reported to be much below at Rs 92.50 a kg for sheet rubber. Certain buyers from the general rubber goods sector remained slightly active in the market who were in urgent need of the raw materiel to fulfil their requirements.

Futures improve

The rubber futures moved up on NMCE as the international markets were said to be in a technical break out. The May contract was traded at Rs 96.00 (Rs 95.51) June contract at Rs 98.20 (Rs 97.60), July at Rs 98.20 (Rs 97.67) and August contract at Rs 96.15 (Rs 95.28) per kg for RSS 4. The transactions were quoted at 1981 tonnes till mid session.

The May futures for RSS 3 flared up to 264.2 Yen (Rs 107.12) from 257.4 Yen a kg at TOCOM. The grade improved to Rs 100.56 from Rs 100.14 a kg at Bangkok spot.

Sport rates (Rs a kg) were: RSS-4: Rs 96 (Rs 94.50); RSS-5: Rs 94.50 (Rs 93); ungraded: Rs 93.00 (Rs 92.00); ISNR 20: Rs 93.25 (Rs 92.75) and latex 60 per cent (per litre): Rs 72.00 (Rs 72.00).