The Hindu Business Line : Rubber drops further on weak global cues

Kottayam, Nov. 13 The international trendsetter TOCOM continued to explore further lows hitting the lower circuit in all distant contracts catalysed by yen’s strength against dollar.

The December futures for RSS 3 closed at 272.2 (Rs 97.19) yen from 283.7 yen a kg at TOCOM while the grade closed at Rs 101.74, against Rs 101.78 a kg at Bangkok spot.

Reacting closely to the global mood, the domestic sheet rubber declined to Rs 96.50 from Rs 97.50 a kg both at Kottayam and Kochi, as most of the buyers stayed back keeping a low profile. The market made all-round declines though the volumes were low as there has been no improvement in arrivals. The weather was also good.

Futures decline

The December futures for RSS 4 declined further to Rs 98.75 (Rs 99.09) a kg on MCX. The November contract for the grade weakened to Rs 97 (Rs 97.79), December to Rs 98.40 (Rs 99.06), January to Rs 100.20 (Rs 100.44) and February to Rs 101.44 (Rs 101.54) a kg on NMCE. The open interest stood at 4,473 (4,412) lots and volumes 1,345 (1,324) lots.

The market regained the initial losses partially towards close on short covering at lower levels.

Physical rubber prices were (Rs/kg): RSS-4: 96.50 (97.50); RSS-5: 94 (95); Ungraded: 90.50 (92); ISNR: 20 93 (93.50) and Latex 60%: 64 (64).