The Hindu Business Line : Bullish trend in rubber prices

Kottayam May 21 The week opened with a bullish trend in physical rubber prices. The market suffered acute shortage of rubber, as growers were unwilling to sell their produce with monsoon almost at the doorsteps. Covering groups and speculators encashed the situation, sources said

Sheet rubber improved to Rs 90.50 and Rs 91 from Rs 89.50 and Rs 90 a kg, respectively at Kottayam and Kochi. The market made all-round gains, as international markets were also supportive.

Futures firm

The rubber futures continued to rule firm quoting the June contract for RSS 4 at Rs 91.81 a kg against Rs 91.23 on MCX. The June contract finished better at Rs 91.80 (91.59), July Rs 93.87 (93.50), August Rs 93.40 (93.33) and September at Rs 91.45 (90.79) per kg on NMCE.

The volumes rose to 1,938 (781) lots. The open interest was 7,309 (7,006) lots with 4,124 (4,018) lots in June, 2,464 (2,302) in July, 632 (618) in August and 89 (68) lots in September.

The June futures for RSS 3 closed at 291.8 yen (Rs 97.70) against 288.5 yen a kg at TOCOM. It closed better by 47 paise at Rs 98.06 (97.59) a kg at Bangkok.

Spot rubber prices were (Rs/kg): RSS-4: 90.50 (89.50); RSS-5: 89.50 (88); Ungraded: 88.50 (87.50); ISNR 20: 89 (88) and Latex 60 per cent: 64.20 (64.20).