The Hindu Business Line : Rubber market in correction mode

Kottayam March 14 Domestic rubber prices remained under pressure as global rubber futures were in a corrective phase on Wednesday. The Japanese markets were hit by bull liquidation following Yens climb against dollar and declines in its stock markets.

On the physical front, RSS 4 declined to Rs 87 a kg from 87.75 and Rs 88 a kg respectively at Kottayam and Kochi. The market declined in the absence of buyers, while selling even small lots induced immense pressure on the prices, an observer said.

Futures weak

The rubber futures lost heavily in the morning session but the distant contracts bounced back later and closed in green on fresh buying and short covering on NMCE. The March contract finished at Rs 85.01(89.01), April at Rs 88.90 (88.69), May at Rs 92.49 (91.75) and June at Rs 95.75 (95.01) per kg for RSS 4.

The April contract for the grade was marginally weak at Rs 89.30 against Rs 89.42 a kg on MCX.

The April futures for RSS 3 declined to 255.5 Yen (Rs 97.58) from 260.4 Yen a kg at TOCOM. Its spot was steady at Rs 97.90 a kg at Bangkok.

Physical prices were (Rs/kg): RSS-4: 87 (87.75); RSS-5: 86 (87); ungraded: 85 (86); ISNR 20: 86 (86.50) and latex 60 per cent: 62.10 (62.10).