The Hindu Business Line : Covering groups prop up spot rubber

Kottayam, July 25 Physical rubber prices improved on Wednesday. RSS 4 firmed up to Rs 82 from Rs 81.50 a kg at Kottayam. According to sources, sentiments were dominated by domestic fundamental factors and a decline in overseas markets failed to dampen the prices. Covering groups were active at the prevailing levels though major manufacturers stayed on the sidelines. The trend was mixed.

Futures gain

The futures also witnessed moderate gains in both leading commodity exchanges. The August contract improved to Rs 82 from Rs 80.93 a kg on MCX. The last traded price for the August contract on NMCE was better at Rs 83 (81.78), September at Rs 80.90 (80.29), October at Rs 80.25 (80.04) and November at Rs 80 (79.63) per kg for RSS 4.

The turnover was 2,417 (1,623 ) tonnes. The open interest was 6,654 (6,562) lots with 3,141 (3,180) lots in August, 1,999 (1,952) lots in September, 1,258 (1,189) lots in October and 256 (241) lots in November. RSS 3 declined at its August futures to 249.9 Yen (Rs 83.99 ) from 251.9 Yen a kg at TOCOM. The grade closed weak at Rs 84.39 against Rs 84.64 a kg at Bangkok spot.

Spot rates were (Rs/kg): RSS-4: 82 (81.50); RSS-5: 80.50 (80); ungraded: 78 (77.50); ISNR 20: 79.50 (79.50) and latex 60 per cent: 58.40 (58.40).