The Hindu Business Line : Supply concerns lift spot rubber

Kottayam, July 26 The rubber prices were extremely bullish on Thursday. Another strong rally in Japanese futures coupled with domestic supply concerns due to lingering monsoon rains lifted the prices though major manufactures stayed inactive in the main marketing centres.

“No Stocks, no tapping and no arrivals,” a spokesperson said, “What else is needed for a commodity like rubber to search for new highs?”

Sheet rubber soared to Rs 85 and Rs 85.50 a kg respectively at Kottayam and Kochi from 82 a kg as covering groups and purchase agents turned aggressive.

The market made all-round gains amidst low volumes. The only matter of concern is the attitude of the tyre sector as the market might suffer heavily in declines if they continue to abstain, an observer told Business Line.

Futures improve

In futures, the August contract for RSS 4 flared up to Rs 84.99 a kg from Rs 81.99 on MCX. The August contract for the grade finished sharply higher at Rs 86.27 (82.96), September at Rs 84 (80.85), October at Rs 83.52 (80.31) and November at Rs 82.40 (80) per kg on NMCE .

The August futures for RSS 3 zoomed to 259.3 Yen (Rs 86.84 ) from 249.9 Yen a kg at TOCOM.

RSS 3 (spot) closed at Rs 84.53 against Rs 84.39 a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 85 (82); RSS-5: 82.50 (80.50); ungraded: 81 (78); ISNR 20: 82.50 (79.50) and latex 60 per cent: 59.45 (58.40).