The Hindu Business Line : Spot rubber declines on global trend

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Kottayam March 7 Rubber prices lost ground on another sharp fall in overseas futures. The dip in Japanese markets was attributed to heavy long liquidation from bulls to limit their losses. Most of the contracts were down by the daily limit on TOCOM

In the physical front RSS 4 fell by Rs 3 to Rs 87 a kg at Kottayam and Kochi. The market suffered all-round losses lacking support from major consuming sectors and intensified selling from dealers and growers.

Futures weak

The rubber futures recorded moderate losses in all contracts on NMCE. The March contract declined to Rs 86.50 (87.20), April to Rs 89.89 (90.31), May to Rs 93.45 (94.24) and June to Rs 96.84 (97.42) a kg for RSS 4.

The volumes were 5,706 (5,728) tonnes and open interest 15,118 (15,626) tonnes on NMCE. The April contract for RSS 4 slipped to Rs 89.80 a kg from Rs 91.02 a kg on MCX. The markets recovered the initial losses towards close on buying at lower levels, sources said.

The April futures for RSS 3 nose-dived by 10 Yen (Rs 3.82) to 249.3 Yen (Rs 95.33) from 259.3 Yen a kg at TOCOM. The grade closed better at Rs 106.38 a kg against Rs 105.07 at Bangkok.

Spot rubber prices were (Rs/kg): RSS-4: 87 (90); RSS-5: 86 (88); Ungraded: 84.75 (86.75); ISNR 20: 86.50 (88.50) and Latex 60 per cent: 61.05 (61.05).