The Hindu Business Line : Poor arrivals prop up spot rubber

Kottayam May 15 Spot rubber showed a firm trend on Tuesday. According to reports, arrivals to the village markets were almost nil indicating a decline in stocks with the growers. Hence the sellers preferred to sideline the market expecting a revival in prices.

The trend seemed to be led by the bullishness observed in domestic futures. Sheet rubber managed to settle at Rs 85.25 and Rs 85.50 respectively at Kottayam and Kochi against Rs 85 a kg but the trading volumes were low in most of the grades. There were enquires from the tyre sector but below Rs 85, an observer said.

Futures improve

The rubber futures improved though the overseas markets were not promising. The May contract expired firm at Rs 85.55 (85.02) a kg on NMCE, while the June contract was quoted better at Rs 87.95 (87.29), July at Rs 90 (89.44) and August at Rs 90.50 (89.22) per kg for RSS 4.

The open interest was 6,202 (7,424) tonnes with 3,866 (3,812) tonnes in June, 1,815 (1,795) tonnes in July and 521 (507) tonnes in August. The volumes were 1,300 (1,260) tonnes.

The June contract was traded at Rs 87.93 against Rs 87.53 a kg on MCX.

RSS 3 fell by 73 paise to Rs 94.62 a kg at Bangkok. The June futures for the grade was almost steady at 273.4 Yen (Rs 92.88) against 273.5 Yen a kg at TOCOM.

Physical prices were (Rs/kg): RSS-4: 85.25 (85); RSS-5: 84.50 (84); ungraded: 83.25 (83); ISNR 20: 84 (83.75) and latex 60 percent: 63.15 (63.15).