The Hindu Business Line : Spot rubber turns weak on resistance

Kottayam, Sept. 12 Rubber prices turned weak on Wednesday. RSS 4 (spot) fell to Rs 87 from Rs 88 and Rs 88.50 a kg respectively at Kottayam and Kochi on buyer resistance. The trend was initiated as domestic futures lost grip mainly on its current month September contracts which even hit the initial daily downward limit of 2 per cent during early trades followed by long liquidation. A weak closing in Japanese markets seemed to be another influence behind the fall.

Futures decline

In futures, the September contract finished down at Rs 89.90 (90.83), October at Rs 83.60 (84.19) November at Rs 82 (82.75) and December contract at Rs 81.95 (82.39) per kg on NMCE. The volumes totalled 1,065 (1,131) tonnes. The open interest was 3,942 (3,929) lots with 601 (717) lots in September, 2,348 (2,247) lots in October, 704 (697) lots in November and 289 (268) lots in December. The September contract for RSS 4 declined to Rs 86.25 from Rs 87.44 a kg on MCX. RSS 3 weakened at its October futures to 243.7 Yen (Rs 86.53) from 245.9 Yen a kg at TOCOM. The grade (spot) slipped by 19 paise to Rs 87.39 a kg at Bangkok.

Spot prices were (Rs/kg): RSS-4: 87 (88); RSS-5: 85.50 (86); ungraded: 80 (81); ISNR 20: 85 (85.50) and latex 60 per cent: 59.45 (60.50).