The Hindu Business Line : Spot rubber declines on panic selling

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Kottayam Feb. 15 Heavy declines in trend setting Japanese markets hammered domestic rubber prices on Thursday. According to reports, TOCOM hit the lower circuit in its five out of six contracts on speculative selling and bull liquidation mainly following an accelerated bear spell in oil products futures.

The physical market lost moderately on buyer resistance amidst selling from traders who fear further fall in prices. RSS 4 declined to Rs 96 and Rs 96.50 a kg respectively at Kottayam and Kochi from Rs 97.50 a kg on Wednesday. The trend was visibly bearish as all major grades including latex lost lacking buying interest.

Futures weak

The futures market fell further on NMCE. The last traded price for February contract was quoted at Rs94.50 (97.90), March at Rs 97.65 (99.56),Aprilat Rs102.73 ( 104.15) and May contract at Rs107.49 ( 108.99) per kg for RSS 4. The turnover stood at 4,065 (2,716) lots and open interest 13,960 (13,733) lots.The March contract for RSS 4 finished at Rs 98.30 against Rs 100.07 a kg (210 tonnes) on MCX.

The March futures for RSS 3 moved down sharply by 10 yen to 274 yen (Rs 100.79) from 284 Yen a kg at TOCOM. The grade weakened to Rs 108.73 from Rs 109.14 a kg at Bangkok spot.

Physical prices were (Rs/kg): RSS-4: 96 (97.50); RSS-5: 94 (94.50); ungraded: 92 (92.50); ISNR 20: 92.50 (93) and latex 60 per cent: 65.25 (65.75).