The Hindu Business Line : Spot rubber declines on global cues

Kottayam Jan. 7 The domestic rubber turned lower on Monday followed by sharp declines in global futures. Reacting to the overall market mood, sheet rubber weakened to Rs 94.75 and Rs 95 a kg respectively at Kottayam and Kochi from Rs.95.50 a kg in the physical front. Major manufactures were buyers on the grade up to Rs 95 a kg in the morning session and they continued to remain active at the counter even at lower levels. The trend was mixed.

Futures slip

The February futures for RSS 3 nosedived to 288.2 Yen (Rs 103.27) from 295.8 Yen a kg at TOCOM. The trend setter hit the lower circuit in all its distant contracts on heavy long liquidation catalysed by a bear strike in oil and gold. RSS 3 slipped to Rs 103.48 (103.69) a kg at Bangkok spot.

The January contract fell to Rs 95.70 from Rs 96.68 a kg on MCX. On NMCE, the January contracts moved down to Rs 96.40 (96.98), February to Rs 97.82 (98.84), March to Rs 99.73 (100.73) and April to Rs 101.56 (102.52) a kg for RSS 4. The volumes were better at 1,590 (621) lots while the open interest stood at 10,138 (10,089) lots. The outstanding positions were 2,465 (2,616) lots in January, 4,487 (4,407) lots in February, 2,423 (2,367) lots in March and 763 (699) lots in April.

Spot prices were (Rs/kg): RSS-4: 94.75 (95.50); RSS-5: 92 (92.50); ungraded: 90.75 (91.50); ISNR 20: 91.50 (91.50) and latex 60 per cent: 61.50 (61.50).