The Hindu Business Line : Lack of buyers hits spot rubber

Kottayam April 11 Though international rubber prices finished mostly in green followed by broad gains in gold and oil futures, the domestic scene was dull on Wednesday. In the physical front, the market recorded all-round losses in the absence of genuine buyers, sources said. The summer rains have triggered an expectation on better arrivals in the days ahead.

Sheet rubber weakened to Rs 93 from Rs 93.50 and Rs 93.75 a kg respectively at Kottayam and Kochi. The market is under the control of fundamentals than speculation and it seems that there is enough stocks and supply to prevent an immediate upbeat, an analyst said. The global indices are also under pressure due to the fall in demand especially from China, he added.

Futures steady

The rubber futures were almost steady on NMCE. The prices declined in the initial session but recovered towards close on fresh buying and short covering. The April contract was quoted at Rs 92.80 (92.62), May at Rs 95.69 (95.71), June at Rs 99.65 (99.67) and July at Rs 101.14 (101.14) a kg for RSS 4.

The May contract for RSS 4 moved down to Rs 95.50 from Rs 95.75 a kg on MCX.

Physical rubber prices were (Rs/kg): RSS-4: 93 (93.50); RSS-5: 92 (92.50); ungraded: 91 (91.50); ISNR 20: 92 (92.50) and latex 60 per cent: 64.20 (64.70).