The Hindu Business Line : Sales pull down spot rubber prices

Kottayam, Aug. 13 Physical rubber prices nosedived on Monday. The retreating rains and Rubber Board Chairman’s clarifications on rubber production had its impact on the market putting an end to the unhealthy speculations based on supply concerns. Sheet rubber declined to Rs 88 a kg both at Kottayam and Kochi from Rs 91 a kg on Saturday. The market made sharp losses on selling from dealers and growers amidst buyer resistance. “We expect the production to improve following the favourable change in weather and since the current rates are ruling above the international levels, the market might seek more realistic levels”, an observer said.

Futures weak

The rubber futures lost heavily breaking the daily limit of 2 per cent on early trade recovered partially towards mid-session but finished weak following renewed selling pressure on late trading. The August contract on NMCE, fell by 4 per cent to Rs 88.11 a kg in the morning session finally landed at Rs 90.50 (91.78) a kg, while the September contract moved down to Rs 82.50 (85.31), October to Rs 79.61 (81.66) and November contract to Rs 78.55 (80.50) per kg for RSS 4. The September contract declined to Rs 82.65 (85.81) a kg on MCX.

Spot prices were (Rs/kg): RSS-4: 88 (91); RSS-5: 85.50 (89); ungraded: 82 (85.50); ISNR 20: 85 (88.75) and latex 60 per cent: 58.95 (60).